Life Annuity Specialist: “Why Envestnet’s ‘Broad Annuity Release’ Next Month has Observers Excited”

Addressing news that Envestnet plans to release annuities on their insurance exchange, Cyril Tuohy of Life Annuity Specialist examines the growing trend toward the inclusion of these products on wealth management platforms. When Envestnet—one of the largest—begins to include annuities on its exchange, it represents an important step toward tighter integration of these products in advisor practices.

RIAs have pushed for greater connectivity of annuity assets in recent years, and insurance companies like Allianz Life, Ameritas, Great American Life, Great-West, TIAA Life and Transamerica have accommodated. The ‘experience’ for advisors with these better-connected, next-gen annuities has been more akin to the custodial assets of the fee-based advisor, so this Envestnet development is a logical progression. As insurance companies continue to design better products, that demand promises to grow—fueled in part by such a behemoth as Envestnet.

Technology has made buying and understanding annuities easier confirms RetireOne Senior Managing Director Kevin Hissong. “That’s the bottom line,” he says, as regulators apply pressure to improve transparency into how these products are priced and how they are sold.

Tuohy points out that Envestnet isn’t the only exchange where annuities are offered, citing RetireOne among others.

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