April 17, 2026

Human connection still key in the new annuity era

TAMPA, Fla. — Consumer trust and confidence are significantly higher when a financial professional is involved, according to LIMRA research, as pandemic-driven changes continue to reshape how annuities are sold and serviced.

Two major shifts have defined the post-pandemic landscape: a lasting evolution in advisor workflows and a growing emphasis on delivering trusted advice through increasingly digital distribution models.

A panel of industry executives discussed those trends and others Tuesday at a session titled, “Unpacking the Annuity Ecosystem.” The session was part of day two of the LIMRA Life Insurance and Annuity Conference.

Traditional industry steak dinners accompanied by a sales pitch could not be held during the COVID-19 restrictions, noted Roger Aucoin, senior analyst with LIMRA and LOMA. Those restrictions forced change on the annuity industry.

“There are carriers out there that would drop a lot of money to do that and bring in a speaker to help find prospects to the advisor,” Aucoin recalled. “So that just came straight to a halt.”

That disruption accelerated the adoption of digital tools such as electronic applications, e-signatures and online policy delivery, panelists noted. Those changes have largely persisted even as in-person events have returned.

The pandemic compressed years of technological development into a much shorter timeframe, the panel agreed, forcing firms to modernize quickly.

“The idea that we would do anything but e-sign for large majority of the business, that hasn’t gone away at all,” said Sky Opila, head of business development and growth at Zinnia.

Onboarding issues remain

Despite progress, the industry still faces friction in onboarding and servicing, often tied to legacy systems that lack real-time integration. Experiences can vary widely depending on the distribution channel, with bank and institutional platforms generally offering more seamless transactions than independent channels.

“It’s kind of a mixed bag,” said Paul Garofoli, regional sales director of individual annuities at The Standard. “There’s still agents who want to get a hard copy of the policy and want to deliver it and go old school.”

With annuities often viewed as commoditized products, panelists emphasized service, including ease of onboarding and ongoing support, is critical to winning and retaining business.

Thomas Bumbolow is head of distribution and business development at American Life and a self-described “newbie” on the panel.

“The only way I know how to win selling a commoditized product is with service,” he said. “If you’re not laser focused on that, whether it’s technology operations, ease of onboarding, ease of doing business, you don’t stand the chance.”

Improving contract servicing was identified as a key opportunity for modernization. Industry groups are beginning to standardize digital processes in an effort to reduce paperwork and improve efficiency.

The Insured Retirement Institute recently approved four new in-force transaction application programming interfaces designed to standardize annuity servicing, Opila noted.

“That will be a massive game changer for distribution,” he said. “It’s going to bring more advisors in because they’re more comfortable working on that business, because I’m not chasing 10 million pieces of paper in different locations just to service a contract and process a basic change.”

Innovation is slowed

While demand for annuities remains strong, especially for newer designs, panelists said product innovation is often slowed by regulatory requirements and filing processes that can take months.

“If you come up with the greatest idea of all time, you gotta file it, and that’s anywhere from 90 to 180 days,” Garofoli said.

However, many consumers are less concerned with innovation than with simplicity, several panelists noted.

Consumers increasingly expect annuity experiences to mirror those of banking and financial technology platforms — fast, seamless and accessible.

At the same time, demographic trends such as the “Peak 65” retirement wave are driving demand for retirement income solutions, while younger advisors are pushing for more digital-first experiences.

And the producer still plays “a vital role,” Garofoli said.

AI shakes things up

Artificial intelligence is beginning to play a role in improving efficiency and consistency, particularly in back-office operations such as application processing and suitability reviews.

Some firms report that more than half of applications can now be processed without human intervention, reducing errors and turnaround times.

“Workflow automation is an exciting term that’s real with AI right now,” Opila said.

Still, most panelists agreed that AI will enhance — not replace — human advisors.

“Most people don’t wake up wanting to buy annuity,” Garofoli said. “They need some kind of catalyst saying, ‘Hey, you can get from point A to point B, and I’m the guidepost to get you there.'”

The discussion also highlighted longer-term challenges, including an aging advisor workforce and increasing consolidation among distributors.

At the same time, rising costs and technological demands are pushing smaller firms to merge or partner with larger organizations.

Although the industry has made strides in digital adoption and customer experience, panelists said, it is still in the early stages of transformation. But the future is bright.

“I think we’re between second and third base,” Garofoli said, using a baseball analogy.

Bumbolow suggested that the industry is on first base for the moment.

“I think the opportunity around distributing different products, if you will, through the similar distribution channels will create efficiencies and improve margins across the board,” he said. “So I think we’re just getting started.”

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