Annuity Insight is pleased to announce the publication of an in-depth report on a new and emerging retirement income product solution that extends living benefits beyond annuities into mutual funds and managed accounts, the Standalone Living Benefit (SALB). With SALBs, insurance companies are now offering guaranteed lifetime withdrawal benefits (GLWBs) outside of the annuity structure on non-annuity assets. SALBs have been generating much interest lately due to their ability to potentially expand the delivery of insured solutions to an even broader array of customers than annuities currently reach, attracting financial advisors that do not sell annuities.

The high level of detail provides key intelligence on various aspects of product design and defines key opportunities and challenges moving forward. The report addresses the following questions:

• Is the SALB a breakthrough product?
• Will it compete with or complement VAs?
• What barriers to entry exist for various players in the market?

The report is based upon research of SEC filings and extensive discussions with executives at the various firms involved, especially focusing on a series of interviews with broker/dealer gatekeepers regarding their attitudes and plans regarding SALBs. It is a must-read for any firm that is actively engaged or interested in implementing SALBs or would like to better understand the role of these products in the marketplace and their potential for growth.

Key insights for insurers

• Important strategic factors driving the decision to enter this new market
• The role SALBs will play in the competition for retirement income assets
• How the risk management differs for SALBs than it does for GLWBs

Key insights for product partners (including mutual fund firms, managed account providers, TAMPs, broker/dealers, and others in the managed money space)

• Understanding the fundamental appeal of the SALB
• Why guarantees are so important as the population of retirees and near-retirees grows
• The importance of hedging in offering SALBs

The report contains detailed information on

• The design and marketing of currently available products
• Information on additional products that are in registration
• The regulatory environment and challenges
• Market potential
• Implementation strategies
• Comparison with VAs
• Broker/dealer appetite for adopting the new products
• Risk management and design issues
• The context for retirement income in the fee-based advisory business
• Key strategic factors that will drive the growth of SALBs