Can Annuities Go Bankrupt? 
Insurance companies that issue annuities can go bankrupt . This is an extremely rare event given the regulatory overview that exists in the insurance industry , but it is possible . Insurers are required to hold , at a minimum , two times the amount of capital vs. the amount of anticipated claims they could incur in any given year . Any insurer who falls near or below this level is subject to serious regulatory oversight to correct and improve their capital position . 