Insurers Lean Into Income, Innovation and Intelligence as Annuity Industry Enters New Era
(New York, NY, June 12, 2025) – US insurance carriers are accelerating their shift toward retirement income solutions and platform innovation as economic uncertainty grows. From rethinking product menus and platform allocations to embedding AI into distribution and education, the annuity business is actively transforming to meet today’s market risks and tomorrow’s investor expectations.
These are among the findings from the newly released 2025 Goldman Sachs Asset Management Annuity Industry Survey: Change on the Horizon, the fifth annual pulse-check of insurance carrier market sentiment, product innovation, and distribution strategy. The full report can be accessed via this link.
“Our latest survey makes it clear that insurers are not standing still,” said Marci Green, Head of Retirement Distribution and Third-Party Insurance, Americas at Goldman Sachs Asset Management. “They are reassessing annuity platforms to reflect real concerns around market volatility, longevity, and investor engagement. It is not about offering more products. It is about offering the right ones.”
Green added, “We’re witnessing a meaningful shift as insurers prepare for a new era- one that is focused on delivering more sophisticated, flexible product solutions, streamlining sales efficiencies, and providing education tools that meet clients where they are.”
Key themes from Change on the Horizon include:
1. Macroeconomic Uncertainty Spurs Portfolio Realignment
76% of insurers now rank a US economic slowdown or recession as the top macro risk, up from 57% last year. Approximately 79% of this survey’s respondents believe a recession is likely within the next two years.
While equity return expectations remain split (55% expect gains, 45% expect losses) there is more agreement on fixed income. Over three-quarters (78%) of respondents anticipate the Federal Reserve will cut rates in the second half of 2025, and nearly 90% believe the 10-year Treasury will finish the year between 3.5% and 4.5%. Consequently, insurers are planning to rebalance platforms, with 29% planning to increase allocations to international developed equities, and growing interest in private markets, including private credit (15%) and private equity (10%).
2. Product Priorities Broaden as Insurers Diversify Index Exposure
While registered index-linked annuities (RILAs) remain a bedrock, with 77% prioritizing them from a manufacturing perspective, insurers are increasingly turning their attention to more traditional lifetime income solutions. This year, 60% of respondents cite guaranteed variable annuities as a key product focus, up from 44% in 2024. Defined outcome investment strategies are also gaining traction, with 61% pointing to client optionality as their most valuable feature.
In terms of underlying indices, AI-themed strategies are expected to remain the most popular, consistent with last year’s findings. However, there has been a significant jump in interest for international and global indices, rising from 21% in 2024 to 37% in 2025. With survey responses collected around Liberation Day, this shift may reflect a broader pivot in economic policy and a stronger push for geographic diversification.
3. In-Plan Retirement Income Gains Traction Across Platforms
In-plan annuity adoption is no longer just a long-term objective. Today, 64% of insurers rank it among their top three business priorities. Over half of respondents already offer an in-plan solution, while another one-third are actively exploring product development. Integration into managed accounts and target-date funds is becoming more common, with 31% and 27% of insurers, respectively, incorporating annuities into these structures. A majority of respondents, 53%, believe that automatic plan defaults will be the most effective catalyst for broader adoption of retirement income solutions.
4. AI Increasingly Viewed as Catalyst for Education, Engagement, and Efficiency
Interest in artificial intelligence continues to rise, and this year’s survey confirms it is becoming a meaningful tool for both advisors and insurers. A full 90% of respondents believe AI will play a key role in helping individual investors better understand annuities and guaranteed income solutions. Nearly half, 47%, expect AI to significantly improve investor education and engagement across the variable annuity landscape, and another 25% believe it will support the delivery of personalized financial advice, reflecting growing adoption of AI-driven advice engines.
From a carrier perspective, AI is already being put to work. Over half of insurers, 51%, report using AI to improve sales efficiency, while 45% cite its value in insurance risk management and underwriting. Others are applying AI to prospecting (13%) and in evaluating or distributing investment strategies (9%).
5. RIAs Lead Distribution Growth as Advisor Needs Evolve
This year’s survey highlights the growing importance of supporting advisors with value-added resources and timely market insights. Respondents pointed to market trends, annuity advocacy, and retirement planning as the most critical themes, alongside continued demand for practice management support and investment solution guidance.
The survey also found that distribution trends continue to shift, with the RIA channel now emerging as the leading growth area. According to respondents, 45% expect the most development to come from RIAs, followed by 38% who anticipate growth in the Independent channel. This marks a reversal from last year, when independent firms led, and RIAs trailed. It also reflects broader industry momentum toward serving high-net-worth investors and meeting rising demand for annuity expertise in fee-based wealth management models.
Looking ahead, insurers anticipate stronger in-plan annuity integration, deeper partnerships with advisors, and broader use of AI-driven insights to navigate both market turbulence and client expectations.
“This is not a year of incremental change. Insurers are laying the groundwork for the next evolution of retirement planning, where guaranteed income, personalized advice, and tech-enabled distribution all work together to serve investors with more sophisticated needs,” Green said. “The industry is moving with purpose, and the direction is clear.”
Methodology
Goldman Sachs Asset Management’s Retirement Intermediary and Insurance Business recently conducted its fifth annual annuity industry survey, with a focus on insurance carriers based in the United States. The purpose is to gain insights on overall market sentiment, identify commercial prioritizations, and assess broad trends driving the annuity industry.
Respondents represent a broad range of organizational roles including executive leadership, relationship management, investment selection and oversight, product development and management, sales and distribution, and marketing. Input came from 102 industry participants aggregated across 31 insurance companies. Responses were drawn from highly tenured professionals, more than 80% having average tenures greater than 15 years.
About Goldman Sachs Asset Management
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs, the business delivers investment and advisory services for the world’s leading institutions, financial advisors, and individuals, drawing from a deeply connected global network and tailored expert insights across every region and market. Goldman Sachs has approximately $3.2 trillion in assets under supervision globally as of March 31, 2025. Goldman Sachs Asset Management seeks to build long-term relationships based on conviction, sustainable outcomes, and shared success over time.
About Goldman Sachs
The Goldman Sachs Group, Inc. (NYSE: GS) is a leading global financial institution that delivers a broad range of financial services across investment banking, securities, investment management and consumer banking to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.