Annuity Market Assessment

Transcription

1 Annuity Market Assessment Quarterly ZIP code-level market intelligence that helps distribution sell more annuities A new solution developed using DTCC production data and IAP s retail financial metrics 1. Measure current retail investor annuity buying behavior Benchmark, trend, and monitor: 2. Measure industry production for unmet potential and competitiveness 3. Determine your firm s market position Implement: Use the new, integrated intelligence to increase production Information Asset Partners bpoll@iapartners.com IAP 2014 All rights reserved

2 Situation: Given two of the best ZIP codes to sell annuities in Florida Recent annuity production did not align with current market opportunity Industry Aligned with Current High Market Potential: Highly Competitive Amelia Island production was among the highest in the state ZIP CODE Total Annuity Users RIAs 0 0 Advisors 20 3 Agents Industry Not Aligned with Current High Market Potential: Less Competitive Lake City production was well below the state benchmark ZIP CODE Total Annuity Users RIAs 0 0 Advisors 11 3 Agents 7 7 RIA and advisor distribution information provided by Meridian-IQ based on a 10 mile radius of the above ZIP codes. Annuity users represent advisors that are reported to use the product in their practice. 2

3 Drilling Down Using DTCC Analytic Reporting: Follow the (inflow) money by products and accounts in the same two ZIP codes ZIP ZIP

4 The value of current retail market intelligence annuity distribution Observations: The annuity industry is not highly aligned with current market potential A substantial portion of high potential ZIP codes have could yield more production A substantial portion of high potential ZIP codes have exhibited low production Current marketing resources can yield more production 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Analysis shows considerable untapped production potential* Market Opportunity DTCC Inflows ZIP-level Annuity Market Size Smallest Market Smaller Market Larger Market Largest Market Florida Total Total Annuity Users RIAs Advisors 22,343 2,910 Agents 27,359 27,358 Almost 70% of the annuity market is concentrated in 25% of ZIPs Production in large markets is well below the corresponding market opportunity * IAP Q analysis and prototype development using DTCC inflow and contract information and IAP s Empirics metrics 4

5 Annuity Market Assessment Leverages Data Integration and Analytics Designed to help distribution sell more annuities MacroMonitor survey provides recent annuity buying behavior data A this quarter opportunity to turn market intelligence into production Empirics metrics transform MacroMonitor research into geographic metrics that rate ZIP codes by current market opportunity Ongoing industry production information enables clients to develop a new view of the business Metrics isolate investable assets and annuity buying to provide a universal, objective measure of current market opportunity: Consistent measurement with no gaps in coverage Industry-representative ZIP code level inflows and transactions 5

6 Annuity Market Assessment: Solution design Analytics that integrate retail investor, industry and client data to help market and sell annuities Current Annuity Market Quarterly Industry Data* Quarterly Carrier / Distributor Data ZIP Codes Recent annuity buying behaviors and wealth data support analytics that represent today s production potential Industry production data from DTCC Analytic Reporting provides the ongoing industry performance benchmark and identifies production opportunity Integrating client production data enables enterprises to assess and manage with a framework of market-based business performance benchmarks Market Intelligence Industry Intelligence Position Intelligence One solution for all aspects of annuity marketing Delivered in MS Excel *Source: Analytic Reporting for Annuities from the Insurance & Retirement Services of National Securities Clearing Corporation, a DTCC Subsidiary. Visit for more information or contact your I&RS Relationship Manager 6

7 Annuity Market Assessment Evaluating the level of market opportunity and its corresponding alignment with the industry and individual distributor Representative AMA ZIP code data Previously featured ZIPs Given the current retail investor market opportunity: ZIP Codes 1 Current Annuity Market Indices High Asset Annuity Buying / High Asset Q1 Contracts 2 Quarterly Industry Production Indices Q1 Inflows Q2 Contracts Q2 Inflows Q1 Contracts 3 Quarterly Distributor Production Indices Q1 Inflows Q2 Contracts Where is there What is our unmet annuity performance? potential? Where can we Which markets achieve gains are highly this quarter? competitive? This year? Q2 Inflows Market Intelligence Industry Intelligence Position Intelligence For each of the 3 independent modules, range is FL benchmark =100. To interpret, evaluate the level of market opportunity (1) and the comparative alignment with the indices in industry (2) and distributor (3). Quarterly Updates Your Firm s Market Position Minor Major Annuity Market Assessment Benchmarks, Intelligence, and Trending Facilitate: Current Annuity Market Opportunity High Low Increase marketing investment; Rapid test and learn programs Improve ROI: Redeploy resources Discover and leverage success drivers Segment: Reallocate resources Competition for production ROI improvement 7

8 Annuity Market Assessment: Interpreting and Applying the Market Intelligence to Sell More Annuities Practice Level Marketing can use the quarterly information to develop and direct a new consultative dialogue with advisors: Market intelligence is specific to their practice and its annuity potential The Assessment makes the business case for the practice to sell annuities Low hanging fruit, trending, and competitive assessments support practice-level marketing decisions Improved ability to test marketing programs and leverage learning across peer markets Improved practice management and marketing ROI Index Range: State benchmark = 100 High Strong Average Low 8

9 Annuity Market Assessment: Applications One set of metrics that supports all aspects of annuity marketing Enterprise Level Annuity Market Assessment ZIP code data is summarized at state level to represent the client-assessed scale of current opportunity Colors represent client market position Team Marketing Retail Online / Direct Product Management Relationship Management Business Development Wholesaling Management Applications Assess high opportunity and competitive markets; Develop strategy and approach for newly identified and differentiated markets Target online ad buys and direct media to investors in high potential/ low production markets; Coordinate retail and institutional marketing; Reallocate marketing spend from unproductive/saturated markets Develop product recommendations, campaigns, incentives, and content to provide wholesaling with new campaigns to producers based on current market opportunity and conditions in their local market Improve relationship performance by leveraging Assessment s intelligence on the distributor s market footprint, potential, and production Focus resources on the branches, carrier products, and producers that have the best opportunity for gains Integrate current market potential content and programs into producer dialogue and programs; Manage territory, contacts, and rotation Integrate quarterly benchmarks into management reporting and dashboards; Use performance and market benchmarks in budgeting and performance improvement programs 9

10 Annuity Market Assessment Carriers, broker dealers, and IMOs gain ongoing, market-based metrics to improve performance and ROI and a new way to achieve breakthroughs in the advisor relationships that generate production One solution for all aspects of annuity marketing Delivered in MS Excel 10