Defined terms for the annuity market and lifetime income landscape.
Capital adequacy is the condition that an insurance carrier holds capital sufficient to absorb adverse experience beyond what reserves cover and continue paying claims under foreseeable stress, assessed against a regulatory standard that scales required capital to the risks the carrier bears.
A captive reinsurer is a reinsurance company owned by — or affiliated with — the same corporate group as the insurance carrier ceding business to it, used to retain reinsurance economics within the group rather than transferring them to a third party.
