A review of 10 of the largest variable annuity providers by Symetra Life Insurance found widespread increases in the fees charged to customers, reductions in guarantees and benefits offered under many riders and sometimes the elimination of an entire guaranteed living benefit offering.

The findings were based on an assessment of product prospectuses active from May 1, 2008 to May 1, 2009 that include guaranteed living benefit riders for the 10 largest VA providers as defined by 2008 total sales using non-qualified money, according to data from the Morningstar Annuity Research Center. According to the review, nine of the 10 providers raised fees on multiple living benefit riders within their VA product suite over the 12-month time span. Meanwhile, eight of the 10 carriers have discontinued at least one guaranteed living benefit rider from the VA lineup.

“We are clearly witnessing a significant trend towards less flexibility and higher fees within some of the most common VA riders,” said Pat McCormick, senior vice president for sales and distribution at Symetra. “VAs can and will continue to play a role in building retirement income as markets recover. That is why now, at such a critical juncture for our industry, it is so important to give customers a dependable selection of VA options and not surprise them with fees and features that change dramatically from one year to the next.”