Annuity insurers are increasingly looking to registered investment advisors as a key growth channel over the next three years, according to Goldman Sachs Asset Management's sixth annual Annuity Industry Survey. The report, released Monday, found that 24% of respondents identified RIA adoption of annuities as the most significant industry trend over that horizon, edging out continued growth in registered index-linked annuities (30%) and expected increases in in-plan adoption (15%).
The survey, conducted between June 30 and July 28, gathered responses from 103 participants at 28 U.S. insurance carriers. These carriers collectively hold more than $1 trillion in annuity assets and include nine of the ten largest issuers by 2025 sales, based on LIMRA data.
Despite the long-term optimism about RIAs, carriers' near-term priorities have shifted. When asked which distribution channel would grow the most over the next three years, 47% of respondents named independent broker-dealers, up from 38% a year earlier. In contrast, RIAs, which led expectations in the 2025 survey at 45%, saw their share drop to 33% this year. Specialty markets, including independent marketing organizations, were cited by just 9% of respondents, while wirehouses and banks trailed at 7% and 5%, respectively.
Goldman Sachs suggested that the independent channel's rise may reflect more flexible advisor economics, broader access to AI and technology tools, and growing demand for fiduciary independence. Marci Green, head of retirement distribution and third-party insurance for the Americas at GSAM, noted that insurers are building resilient platforms for future growth, with global asset diversification, versatile product suites, and AI conversion from concept to practical tool all playing roles.
Why fee-only RIAs remain light on annuities
Structural factors continue to slow annuity adoption in the RIA channel. A new white paper from Cerulli Associates found that independent RIAs use commissionable insurance products far less than advisors overall (15% vs. 51%). The gap is similar for fixed-indexed annuities (24% of independent RIAs vs. 58% of all advisors) and RILAs (7% vs. 37%).
Hybrid RIAs with a broker-dealer affiliation can sell variable annuities on commission, allowing an advisor to act as a fiduciary in one part of a client relationship while operating as a registered representative in another. Independent RIAs whose advisors hold state insurance licenses can sell fixed annuities and life insurance directly, sometimes on commission. True fee-only firms, however, hold neither license and typically offer annuities through referral partners or use the growing selection of fee-based contracts.
Among RIAs with at least $5 billion in assets, the number of independent firms with insurance capabilities is estimated to rise from seven in 2020 to 36 in 2025, a 37.3% compound annual growth rate. True fee-only firms grew from 83 to 121, or 7.8% a year, but their share of that market by assets shrank to 34% from 42%.
How insurers are solving RIA distribution
In the GSAM survey, 36% of respondents said fee-based advisory products were a manufacturing focus, showing how carriers are adapting to fiduciary RIA firms' preferences. MassMutual's Ascend platform recently crossed $2 billion in RIA annuity sales, highlighting the potential of such products.
Support services may be as important as product design. When asked which resources matter most to them and the advisors they serve, 34% of carriers ranked annuity advocacy first, and half placed it in their top three. Practice management (47%) and market insights (44%) followed.
Technology is also playing a role. Seven-tenths of respondents said AI is helping improve sales efficiency (70%) and reduce operational costs (68%). A quarter (26%) pointed to AI's role in attracting new advisors and clients. Nearly all respondents (86%) believe end-investor education and engagement will be strongly driven by AI, and two-thirds think AI-enabled financial advice will become instrumental. This aligns with the rise of sophisticated AI-driven advice engines that retail investors have gravitated toward in recent years.
