For some companies, a roadblock is the markets way of telling them to forget trying something new. For others, roadblocks offer challenges to test their ability and acumenonce past those barriers, the effort seems worthwhile. For Farmers Life, a division of Farmers Insurance Group, there were two huge barriers of entry into the variable annuity market, according to Harris Mortensen, director of annuities and variable products. The company needed both a distribution system and an administration system.

Its network of captive agencies would have to get out their textbooks to study for the SEC license to solve the first barrier, but the second one, well, that would take some effort by the company.

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