As interest rates spiked in the first quarter of 2023, carriers offered more liberal payouts, spurring a significant rise in the sale of indexed annuities with guaranteed living benefits.

While Limra has predicted in previous forecasts that the FIA market will continue to grow, primarily for products without a living benefit, first quarter data shows marked improvement in both areas. Sales of indexed annuities with a living benefit rose 36% in the first quarter of 2023 to $7.9 billion.

Nathan Herzog