Immediate-Annuity Direct Mail Spikes

A wave of aging Baby Boomers is heading for the retirement income harbor, and direct mail is riding the crest by touting single premium immediate annuities (SPIAs). Sales of SPIAs, which guarantee buyers an income stream for the rest of their lives based on a single upfront payment, hit all-time highs in 2011. Correspondingly, direct-mail volume for SPIAs was 18% higher in 2011 than in 2010, reports Mintel Comperemedia. Direct-mail marketing of SPIAs clearly has taken off compared with deferred counterparts and comprised 75% of all annuity acquisition direct mail to consumers in 2011, up from 62% in 2007. Although most annuities are still sold by agents, some carriers are even seizing the opportunity to go direct to consumers with SPIA direct mail. For Mintel's report, see
http://www.mintel.com/press-centre/press-releases/848/single-premium-immediate-annuity-direct-mail-volume-18-percent-higher-in-2011-than-2010