A new brief by the Insured Retirement Institute (IRI) looks at how digital strategies can incentivize financial professionals to embrace annuities, finding that most would use the product if its process were better streamlined.
According to the research, Advancing Digital First for Annuities, 90% of financial professionals surveyed say they would incorporate guaranteed lifetime income products into their practice if its sale process included e-Signature and e-Delivery capabilities for all transactions.
Specifically, out of the 90% who use e-Signature services, 65% said they would use these products “a lot more” often while 25% believe they would use it “a little more” frequently. Similarly, 66% of the 90% who utilize e-Delivery services would incorporate annuities “a lot more” regularly, while 24% said they would use them “a little more” repeatedly.
Currently, the IRI found that only about one in four financial professionals use e-Signature, e-Application, and e-Delivery for all their annuity transactions, while 74% utilize all three features.
The IRI report goes on to suggest that wide accessibility and usability of all three services would result in best-in-class service, and ultimately lead to an increased use of annuity products among financial professionals and clients.
“Paper forms and wet signature requirements are often deeply embedded in processes for annuity transactions,” said Frank O’Connor, vice president of research at IRI. “Financial professionals said loudly and clearly that replacing these older processes with digital capabilities is imperative to improve both the speed and accuracy of annuity transactions and to create an experience akin to what advisors and consumers are used to when investing in mutual funds and other financial products.”
IRI’s research is part of its Digital First for Annuities initiative, which aims to streamline the annuity transaction process for financial professionals and consumers by encouraging organizations to prioritize digital channels and technologies when creating and delivering products, services, and experiences. It also includes designing and implementing processes, services, and products primarily focused on digital platforms, often before considering non-digital alternatives, according to the IRI.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
