​Market Preps Custom Annuities 2.0 As Carriers Eye Rates

Fixed index annuities that use custom index underlyings have been around for about three years now, seeing rapid growth as risk adverse end investors seek capital protected returns. While the initial round of offerings have generally revolved around controlling volatility by swapping exposure from equity to cash or bonds, the latest generation will see more sophisticated innovations in light of future increases to interest rates later this year.