Amid Market Volatility, Insurers’ Focus Shifting to Annuities and Retirement Income
More than half (56%) of insurance carriers responding to a Goldman Sachs Asset Management survey indicated that they already offer an in-plan annuity solution and another 33% reported that they were considering the option.
Insurance carriers have accelerated their focus on annuities amid the year’s market volatility, showing an increased interest in providing retirement income solutions, innovating and implementing artificial intelligence, according to a Goldman Sachs Asset Management survey released Thursday.
Among the survey’s findings: heightened, with 64% of respondents ranking it among their top three business priorities. Many already have worked on the solutions, with 56% of respondents indicating that they already offer an in-plan annuity solution and another 33% reporting that they were considering the option.
Additionally, 31% of respondents said they were integrating annuities into managed accounts and 27% into target-date funds. More than half of respondents said automatic plan defaults could be the most effective tool to drive widespread adoption of in-plan annuities for the decumulation phase of retirement saving.
“There has been a bit of a resurgence in the focus on guaranteed lifetime income annuities out of plan, and now we’re starting to see that parlay in-plan in a more meaningful way,” says Marci Green, head of retirement distribution and third-party insurance at Goldman Sachs Asset Management.
The survey was conducted between March 24 and April 22, with 102 industry participants from 31 insurance companies. Since the responses were collected through President Donald Trump’s so-called Liberation Day, the apex of trade war uncertainty, which has since slowed notably, the responses reflected insurers’ priorities amid continued market volatility.
Meanwhile, registered index-linked annuities were popular among respondents, with 77% of managers prioritizing them. In addition, 60% of respondents said guaranteed variable annuities are a key focus this year, up from 44% in 2024, according to the survey.
Insurance carriers are also diversifying the underlying indices. AI-themed strategies remain popular, while interest in international and global indices have seen a dramatic rise: up to 37% from 21% a year prior, reflecting a push for geographic diversification in uncertain times—although the study’s timing likely influenced the increase, at least in part, Green says.
“What we’re seeing is a diversification beyond what was a priority of the past,” Green says, noting that the increase does not mean diversification was not a priority previously, but that insurers are “zeroing in” on refined offerings.
Another key development is the growing embrace of AI: 90% of insurers indicated they believe AI will play a critical role in helping investors better understand annuities and guaranteed income. Nearly half said they expect AI to significantly improve investor education and engagement, while 25% said they see it enhancing delivery of personalized advice.
On the operational side, 51% of respondents reported deploying AI to boost sales efficiency, and 45% reported doing so to streamline risk management.
The survey also underscored a notable pivot in distribution strategy: registered investment advisers overtook independent channels as the primary growth driver, with 45% of insurers expecting the most development among RIA providers —up from last year’s second place standing.
“Everyone sees that there’s a change in terms of how we’re going to be able to get these important solutions and benefits in the hands of the retiree community that needs them,” Green says.