Annuity Marketing Report: Study of Annuity Marketing Share

In this annuity marketing report it will be outline the difference between companies primarily selling annuities, and those selling annuities along with financial life product. The study also probes annuity marketing share possibility and probability. See why even though there are so many annuity marketing distributors, no one can control the market.


Annuity marketing is often performed by Life Insurance Company Regional Directors, Independent Marketing Organizations, or Annuity Wholesalers. Independent Marketing Organizations, frequently know as an IMO. They may do business as a direct one company operation, or be independently representing many annuity/life insurance companies. In many states, my report reveals 350 – 500 total active annuity marketing competitors.  However, when carefully analyzed, the marketing study reveals that the overwhelming market share  is the result of usually only about 30 annuity marketing firms and another 15 to 20 Multi-Financial companies.


An Insurance Company is considered “Multi-Financial” when a decent bite of total business comes from non-annuity areas such as universal life, survivorship life, second to die, etc. One multi-financial company is currently commanding an exceptional high penetration. market share. The company’s own regional brokerage managers have outperformed similar competitors. Their contracting of brokers rises above exceptional levels. In California over 9,000 “active” brokers are under their contract, almost 1/6th of total life brokers in the entire state. Very impressive, but contracting by itself means nothing. Do even 50% of their brokers actually produce applications for them?


In annuity marketing, NO one company is consistently, state by state at the top. For example, examine California. The leading carrier based on total annuity brokers contracted, claims possession of nearly 4,800 annuity brokers out of slightly over 30,000 annuity agents statewide. This equates to 18%. This same company r drops to ranking 5th overall in both Texas and Florida.


Attempting to reach 20% of the total annuity broker infiltration penetration is a feat to accomplish and then maintain. Any Insurance Company recruiting one of five brokers in a state is a major kingpin. You have 50 insurance companies and at least as many independent marketing organizations vying for annuity production. All are gunning for the same limited number of brokers that write annuities. Competition in the lucrative annuity field comes with a capital “C”. It is essential to know (1) total annuity brokers and (2) true amount of competing companies and independent marketing organizations in your territory.


Not very! 50% of the agents broker with one annuity carrier. 30% of annuity brokers represent multiple annuity and multi-financial carriers. 15% of brokers writing annuities, are contracted by 6 or more annuity companies and multi-financial carriers. Of the 260,000 annuity brokers nationwide, a small bunch of notorious agents contract with everyone, yet produce for none.


Do not only target brokers licensed with the top couple annuity carriers (competitors) in your territory? Targeting just a few and you miss many. Remember the top producers are spread out among 50 carriers. Certainly it is no sin for an annuity marketing organization to direct your recruiting efforts solely toward ALL agents already brokering annuity business. This should become your one and only market plan. The ultimate realization should be (1) the size of the pond is very limited, (2) with skill you can still catch big fish, and (3) keep a very wary eye out for the other recruiters working to snag your big fish producers!

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