Survey: Financial professionals say digital solutions would improve annuity sales process

Columbus, OH – The digital revolution continues to impact all facets of the retirement planning industry, and the sale of annuities is no exception.

According to a recent survey from Nationwide, financial professionals who sell annuities are using a variety of software and financial technology platforms in their practices, including financial planning software (73%), customer relationship management (CRM) platforms (62%) and performance reporting software (56%). They are primarily gaining access to these programs through their firm or third-party providers, with some turning to financial services providers for solutions.

However, there remains a gap in the tasks these technology platforms address. Financial professionals listed examples such as digital new business application submissions (49%) and online capabilities to track pending business (38%) as digital solutions that would simplify the annuity sales process for themselves and their clients.

“It’s great to see financial professionals embracing technology, as digital tools can help ensure seamless transactions for clients. However, it’s clear there is still a need for more enhanced tools across the industry to make the sales process simpler,” said Craig Hawley, president of Nationwide Annuity. “The good news is this is an area the industry is actively addressing. In fact, it’s one of the reasons Nationwide is configuring and integrating a new policy administration system for our annuity business that will optimize digital business tools and processes, making simplicity a priority, while enabling a more efficient experience for our partners.” 

Financial professionals may be unaware of the ongoing work being led by industry groups like the Insured Retirement Institute that is shaping and defining the annuity industry’s digital standards, leading them to believe their concerns are not being addressed, Hawley said. This may be why two-thirds (66%) of financial professionals told Nationwide they are only somewhat or a little open to exploring new or additional FinTech platforms.

“If financial professionals feel their technology needs are not being listened to, they are going to be less open to trying out new platforms – meaning they may never discover existing financial software that solves challenges they may be facing,” Hawley said. “For example, Nationwide offers an online pending business tracker, as well as access to our annuity products on industry standard electronic order entry platforms. By seeking out and leveraging more digital tools, financial professionals will be able to differentiate themselves from the pack and create a more efficient and personalized experience for clients. He highlighted the following considerations for financial professionals when determining what FinTech tools may best help them sell and service customer accounts:

1. Integration: Look for digital tools that can integrate seamlessly with any existing systems you’re already leveraging or fit well into your sales process. For example, Nationwide offers pre-sale annuity tools to help financial professionals find the best product to fit clients’ needs. This can help build a cohesive, efficient workflow and eliminate disjointed technology use.

2. Scalability: Choose tools that can grow with your business. You want to make sure any digital tools you use can accommodate an increase in clients and operations.

3. User Experience: One of the most important things to consider is how user-friendly the digital tools you’re considering are for both you and your clients. Platforms that are easy to navigate and understand can significantly enhance customer satisfaction. 

“It’s going to be crucial for financial professionals to continue testing new digital solutions to stay ahead of the competition and ensure seamless transactions for clients,” Hawley said. “This is going to be particularly important as more annuity providers adopt fast, modern, streamlined processes for each step in the financial professional and consumer journey. Financial professionals don’t want to risk falling behind as their competitors find ways to make new technology work for their practice.”

About Nationwide’s Annuity Financial Professional Survey
The research was conducted online within the U.S. by Nationwide Mutual Insurance Company and Zeldis Research from September 5-24, 2024, among 504 financial professional respondents. Respondents had to be annuity-producing financial professionals with at least three years of experience as a financial professional.