This is among the key findings in the fifth annual Goldman Sachs Asset Management survey of insurance and annuity providers, released in mid-June.

Gathering input from more than 100 professionals at 31 different U. S. insurance providers, the report, titled“ Change on the Horizon,” identified several key market trends and emerging product and distribution trends. Goldman found after surveying insurers that 45 % of them ranked RIAs as the leading growth area for annuity sales, reflecting rising demand for annuities from fee-based advisors. Only 38 % of respondents said they anticipate growth from the independent channel, which is made up of independent insurance agents.

This uptrend in RIAs’ interest in annuities is a significant change from the not-toodistant past. Only a decade ago, most RIAs carefully avoided annuities because they were largely sold with commissions and came with high expenses and steep charges for early surrender.

Since then, however, insurance companies have introduced a variety of no-load annuity products designed for fee-only advisors. These annuities have low expenses and more consumer-friendly features. In addition, RIAs have recognized a growing need for guaranteed retirement income among clients who don’ t have pensions to rely on. Finally, the rise in interest rates since 2022 has made annuity payout rates and other terms more appealing.

“ This marks a reversal from last year, when independent firms led, and RIAs trailed,” Goldman Sachs said a press release.

Insurance carriers were asked about their top three business priorities for the year, and 77 % of them said that the biggest focus of their business was the sale of registered index-linked annuities. Meanwhile, 64 % said their biggest issue was the offering of

Only a decade ago, most RIAs carefully avoided annuities because they were largely sold with commissions and came with high expenses and steep charges for early surrender.

annuities within retirement plans( most already offer at least one in-plan solution, while another third said they are actively exploring developing one). And 60 % said that more traditional lifetime-income solutions such as guaranteed variable annuities were a key product focus, a jump from just 44 % one year ago.

Marci Green, the head of Goldman Sachs Asset Management’ s retirement distribution and third-party insurance for the Americas, said in a press release that insurance companies are reassessing their annuity platforms“ to reflect real concerns around market volatility, longevity and investor engagement. It is not about offering more products. It is about offering the right ones.”

On the overall economy, 76 % of the insurance company respondents ranked a possible recession as the top macroeconomic risk— a steep jump from just 57 % of respondents who selected the same answer last year. At the same time, nearly 80 % said

they believe a recession is“ likely within the next two years.” Consequently, only 55 % of respondents said they expect gains in U. S. equity markets this year; 45 % expect losses.

Insurers were more optimistic about fixed-income markets. Nearly 90 % of those surveyed said the 10-year Treasury will yield between 3.5 % and 4.5 % at year’ s end, and 78 % of respondents predicted the Federal Reserve will cut interest rates later this year.

AI is also on insurers’ minds. A whopping 90 % of respondents said they believe AI will play a“ major role” in helping clients better understand annuities and guaranteed income, while 51 % of insurers said they are already using AI to improve sales efficiency.

— Ben Mattlin

JULY / AUGUST 2025 | FINANCIAL ADVISOR MAGAZINE | 9