Defined terms for the annuity market and lifetime income landscape.
Mutualization is the institutional arrangement, central to the ergodicity-economics treatment of cooperation, in which agents jointly own and bear the outcomes of a shared risk pool, so that each member's individual outcome becomes a function of the pool's aggregate experience.
NAIC model regulation is a template rule developed by the National Association of Insurance Commissioners that individual states may adopt in whole, in part, or not at all, providing a mechanism for coordinated regulatory standards across state insurance departments in a state-primary system.
A named fiduciary is the fiduciary explicitly designated in the plan document (or identified through a procedure set out in the plan document) as having authority to control and manage the operation and administration of an ERISA-covered plan.
A Nash equilibrium, in the cooperative context, is a configuration of participation decisions in which no individual could improve their outcome by unilaterally changing whether they join, remain in, or exit a pool, given what every other participant has decided to do.
Natural hedging is the practice of offsetting longevity-related exposures within a single portfolio by combining liabilities that respond in opposite directions to changes in life expectancy — typically life insurance and annuities — so that systematic mortality shifts partially cancel.
