Low-interest rates and market volatility continue to take their toll on the insurance industry. They have claimed yet another victim, as Industrial Alliance has decided to discontinue its GMWB series.
According to a release obtained by Advisor.ca, the firm announced its decision to close sales of its GMWBs due to falling interest rates and no sign of a short-term improvement.
“The company has decided […] to no longer offer the Ecoflextra series in its IAG Savings and Retirement Plan and stop deposits in the Ecoflextra Series and Ecoflextra – Guaranteed Surrender Series,” it says in the release.
Effective July 27, 2012, no new preauthorized cheque payments (PACs) can be established for a GMWB series. Existing PACs can continue, but deposit amounts can’t be increased.
August 17, 4pm ET, is the deadline for all applications to purchase an IAG Savings and Retirement Plan contract with the Ecoflextra Series.
All funds in the Ecoflextra Guaranteed Surrender Series and the IAG Savings and Retirement Plan Ecoflextra Series will be closed to new deposits and transfers on November 2, at 4 pm ET.
In a growing trend, a number of insurance companies are countering the low-interest rate environment and unabated stock market volatility by either tweaking their products or paring their product shelves by suspending or discontinuing some of their offerings.