Defined terms for the annuity market and lifetime income landscape.
Alternative asset concentration is the share of an insurance carrier's general account allocated to assets outside the traditional public investment-grade fixed income mix — such as private credit, collateralized loan obligations, and structured credit.
An AM Best rating is a financial strength rating issued by AM Best Rating Services, the specialized rating agency that has historically been the primary source of insurer financial strength opinions in the United States.
Ambiguity aversion is the tendency for individuals to prefer choices with known probabilities over choices with unknown or imprecisely known probabilities, even when the expected outcomes are comparable.
