Alternative indices and the quest for customer value
The index interest crediting strategies in fixed indexed annuities offer the opportunity for growth based in part on the growth of an underlying market index. Historically, most strategies have been tied to the performance of the S&P 500®. But recent years have seen an explosion of alternative indices offered by carriers seeking to differentiate themselves and their products in the marketplace. How do these indices differ, and how can you determine which ones deliver real customer value?
To answer these questions, it's important to understand the objectives behind alternative indices and then assess whether a crediting strategy linked to a particular index is designed to deliver on the potential it offers. In this white paper, you'll discover three critical factors to consider in your analysis.