Asset-based pricing is a small corner of the insurance world now, but it represents a growing trend in the manner some products are sold to non-retail customers, according to its proponents.

Changes in the manner intermediaries sell insurance-oriented investment products and improvements in technology are prompting an increase in sales based on asset-based fees rather than traditional sales charges, according to insurance company executives. The demand for asset-based pricing is coming primarily in institutional sales channels where insurance companies sell corporate-owned life insurance to corporations and variable annuities through registered investment advisors, according to insurance executives.

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