Finetre Launches AnnuityTrak Report, Provides Window Into Annuity Sales Trends
HERNDON, Va.--(BUSINESS WIRE)--June 21, 2006--Finetre Corporation today announced the launch of a new series of indices that measures total sales of annuity products within the full-service brokerage sector. Published weekly, the Finetre AnnuityTrak Report(SM) measures Total Annuity Sales, Annuity Replacement Sales, and New Money Sales. Finetre processes the orders for approximately 40 percent of annuity sales in the full-service brokerage sector, which yields a statistically-significant sample of current industry data from which the company can model total sector annuity sales with a high degree of accuracy. "The AnnuityTrak Brokerage Index will give annuity executives completely new, real-time insight into what's occurring in the marketplace," said Shane Chalke, president and CEO of Finetre. "Companies will use this information to measure the impact of outside forces on the sector, such as new legislation, market volatility, or media coverage. Of particular interest to industry observers is what percentage of sales is new money versus replacement from another annuity product."
Finetre's AnnuityNet Platform(TM) provides brokerage firms with online transaction processing and compliance oversight capabilities for annuities and other insurance and investment vehicles. Finetre currently counts nearly 40 insurance carriers and over 20 brokerage firms, including three of the five New York wirehouses, processing annuity transactions in real-time across AnnuityNet. The AnnuityTrak Report, which is based on AnnuityNet data, tracks annuity sales taking place at regional broker/dealers and New York wirehouses. The index is based only on activity at full-service brokerages; activity occurring at independent NASD firms or bank branch sales is not yet included. Distributors join the index only after fully automating the majority of their annuity transactions via the AnnuityNet Platform. Brokerages are segmented by size to produce a statistically valid index. Distributors are weighted within the index so that any exits or new arrivals by distributors will not impact the index.
The indices will be based upon live streaming AnnuityNet transaction data for applications and subsequent premium payments for both fixed and variable annuities. For the 2005 calendar year, the index value for the average total sales has been set at 1000. The indices for replacement sales and new money sales will add up to the total index, illustrating the proportion of sales of each type. Because annuity sales volume typically fluctuates relative to the concurrent time within a calendar month, all index data is adjusted to better-portray overall weekly results. "The report represents the first time the industry has had a real-time barometer of weekly annuity sales," said Chalke. "Brokers will have a new sense of context for annuity growth, and this could only be made possible with the aggregated sales data collected over Finetre's AnnuityNet Platform." |
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