The same trend was evident when buyers were asked about the most valuable source of information in helping them make their annuity purchase decision, with material supplied by the intermediary being the top choice of respondents by a wide margin. Information from annuity companies was a distant second, while other sources ranked far lower. Intermediaries also played a central role in helping buyers choose an annuity provider, as well as in understanding the product's features.

When asked how likely they would be to consider buying an annuity over the Internet, without a professional intermediary shopping for them or advising them, only about 15% of those surveyed said they were either somewhat or very likely to do so—although younger respondents were more open to the idea. When the 757 survey respondents without annuities were asked what factors might make them more likely to consider buying one over the Web:

• Nearly one in three said they wanted the ability to compare products offered by different companies on one website.

• One in four would expect a discount after eliminating the intermediary.

• About one in four would buy online if they could speak with a licensed advisor during the sales process to answer questions.

• Nearly one in five would want a single point of contact at the company to advise them.

(Photo: Shutterstock)

To leverage the advantages of the web without going so far as to cut out the intermediary entirely, direct online marketing could be employed to develop warm leads for a provider's distribution force—perhaps concluding with a suggestion to "make sure to ask your financial advisor if an annuity is right for you." For first-time buyers, such a message could include an online service to connect interested prospects with an affiliated intermediary. However, a carrier could also offer the option to speak directly with one of their own in-house customer service representatives, if a consumer chooses to buy without an outside intermediary.

Related: Longer lives pose growing opportunity, bigger risks for insurers

Still, while there is room for different approaches among customer segments, the potential for widespread disintermediation appears to be rather slim for the time being in the vast majority of annuity sales today, Deloitte's survey indicates. The data confirmed that intermediaries are likely to remain the lynchpin—as the primary catalysts, educators, and influencers—in convincing consumers to buy annuities and guiding them on how to proceed.

That's likely because an annuity remains a fairly complicated product for most average consumers to understand, so therefore, they rely on a financial professional to explain how one works as well as the benefits of making such a long-term investment. There also aren't many comprehensive, alternative sources of information out there for those who might consider buying an annuity on their own.

These findings might be reassuring to most annuity providers, who have been largely dependent on their distribution force to cultivate prospects and close sales. But the challenge facing annuity companies is how they might more effectively support intermediaries in fulfilling their integral role, while better enhancing penetration and market share among underserved segments—particularly younger consumers—regardless of the channel involved.

What more do you think insurers might do to help their sales force market annuities? Is direct marketing over the web a viable option, given the complexity of most annuities? How might intermediaries turn the web from a threat into an opportunity? Offer your comments, below.

Meanwhile, for more information about Deloitte's "Voice of the Annuities Consumer" survey, including an examination of four opportunities for providers to expand the annuities market, access our full report in Deloitte University Press, co-authored by my colleagues, Michelle Canaan and Nikhil Gokhale. You are also welcome to listen to Deloitte's recent webcast based on the report: "Reinventing the Annuity Prospecting and Sales Process."

Sam J. Friedman ([email protected]) is insurance research leader with Deloitte's Center for Financial Services in New York. Follow Sam on Twitter at @SamOnInsurance, as well as on LinkedIn. These opinions are his own.