FIA Market Briefing

What this means for FIA rates: The 10-year Treasury rose +0.18% this week to 5.29%, widening insurer bond income — but rising volatility (VIX at 16.3) is driving up options costs, so the net effect on cap rates is mixed. The yield curve is normal (+128 bps), a healthy sign for insurer long-term portfolio returns.

Mixed signals for FIA rates. Higher yields are a positive, but rising volatility is driving up options costs, which can offset the benefit. The 10-year moved from 5.11% to 5.29% over the week, and VIX went from 15.18 to 16.34. The yield curve is positive (128bps spread) — a healthy sign for insurer portfolio returns. Watch for rate updates from carriers — some may hold current rates while they wait for volatility to settle.

• →Volatility is elevated — emphasize the downside protection and guaranteed floor that FIAs provide.
• →With the S&P down 1.46% this week, this is a strong moment to highlight how FIAs protect against market losses while still offering upside participation.
• →With the 10-year at 5.29%, fixed-rate alternatives look competitive. Be ready to explain how FIA participation in market upside differentiates them from straight fixed annuities.