As insurance products, annuities are much more highly regulated, with different requirements for each state. For instance, some policies or riders are not available in every state. Such limitations can make a broker unwilling to want to try to use annuities or cause errors when filling out policies in the first place. Such delays and inconveniences present further impediments to sales.

To remedy this barrier, many in the industry hope to spark widespread adoption of automated, Internet-based policy processing. By upgrading technology, firms such as AnnuityNet have enabled straight-through processing for applications, eliminating the possibility of error, streamlining applications, and eliminating the problem of lost paperwork.

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