Founded in 1989 and a leading developer of equity indexed annuities, they have been an exclusive partner with Annexus since 2005. Richard Kado, the founder, has been selected as one of the most influential people in the annuity business.
Kado has been working in the insurance industry in some form or another for more than 30 years — everything from working in the field as an agent to working in the home office to running a broker/dealer. Eighteen years ago, Marc Verrier and Kado founded Genesis, a research and development company focusing on new annuity products for the U.S. marketplace. "During my tenure at Genesis, I am proud to say that I have been involved in the development of products that have greatly impacted the insurance industry," Kado says.
In early 1992, a distributor approached Genesis to see if they could find a way to develop a product that would combine the strong guarantees of a fixed annuity with the upside opportunities of variable annuities. "Over the next two years, our research and development efforts led to the creation of a new crediting method that made the equity indexed annuity possible," Kado says. "Over $100 billion in fixed index annuity sales later, I'm pleased to say that the crediting method used in those original product designs are still very much in use today."
Kado says the success of Genesis over the long haul has been the result of a straightforward business model. "First, we make it our business to partner with the best distributors — the individuals that understand the market and can help us shape designs that work for all stakeholders (e.g., client, agent, distributor, carrier, and regulator)," Kado says.
"Second, our focus is developing new and better products. Because Genesis is an independent product development company, our approach to the development process is not carrier-centric, freeing us to 'think outside the box' and focus purely on concept and innovative design. Once the heavy lifting on the research and development of the new design is complete and we've satisfied ourselves that the design is solid, then — and only then — do we approach an insurance company."
What does the future of product design hold? "We see the future of crediting methods evolving toward designs that maximize the upside potential in today's economic environment. I see a shift away from frequent automatic stock index resets — like the annual ratchet product — towards more efficient products that reset less frequently, offer greater earnings potential and ultimately provide more choices for the consumer."