Defined terms for the annuity market and lifetime income landscape.
Nonforfeiture regulation is the body of state insurance requirements that specify minimum guaranteed values a contract owner retains under a deferred annuity even if premium payments stop or the contract is surrendered, so the contract owner cannot lose the entirety of what has been paid in.
Nudge theory is the proposition that decisions can be systematically influenced through choice architecture changes that make particular selections more likely without restricting other options or changing their economic payoffs.
Offshore reinsurance is reinsurance in which the reinsurer is domiciled outside the ceding carrier's home regulatory jurisdiction — typically in Bermuda, the Cayman Islands, or another jurisdiction with a distinct regulatory and capital regime.
Operating earnings versus GAAP earnings is the structural comparison between an insurance carrier's reported GAAP net income and the carrier-defined operating-earnings metric, which strips out items management considers non-recurring or non-economic to present the underlying core-business result.
Optimism bias is the tendency for individuals to expect favorable future outcomes at rates that exceed what past experience or base rates would support, and to expect unfavorable outcomes at rates lower than those references would support.
