Defined terms for the annuity market and lifetime income landscape.
A commitment device is a voluntary arrangement that constrains an individual's future options in order to protect a current commitment from being reversed under future preferences the individual anticipates but wishes to override.
Company action level is the first regulatory intervention threshold under the US risk-based capital framework, triggered when an insurance carrier's risk-based capital ratio falls below two hundred percent and requiring a corrective action plan submitted to the state insurance commissioner.
Compound annual growth rate is the constant annual rate at which an initial amount would have to grow to reach a final amount over a specified number of years, used as a single-figure summary of investment or asset performance over a period.
