Defined terms for the annuity market and lifetime income landscape.
Cost view is the Longevity Standard analytical frame that fixes a target level of lifetime annual income and compares the capital required to produce it across different arrangements.
Crediting parameter drag, in the cost-structure sense, is the cost-structure value that applies to lifetime income arrangements where the insurer's cost is imposed through manipulation of cap rates, participation rates, and spread parameters that determine how much of the index return is credited.
Deferral multiplier is the factor by which the income produced per dollar of premium increases when income commencement is deferred to a future date, holding all other parameters constant.
Embedded spread, in the cost-structure sense, is the cost-structure value that applies to lifetime income arrangements where the insurer's margin is built into the asset yield supporting the contract and is not separately disclosed.
A frictionless pool is a theoretical mortality pool that delivers the maximum lifetime income pooling could produce, used as the benchmark against which real lifetime income products are measured.
