Defined terms for the annuity market and lifetime income landscape.
Pool governance is the set of rules, decision rights, and structural features that determine how a lifetime income pool operates — underwriting standards, redistribution rules, withdrawal rights, and dispute resolution — independent of any individual member.
Pool size effects are the ways in which the income, predictability, and operating costs of a lifetime income pool change as the number of members in the pool increases or decreases.
Pooling efficiency is the degree to which a lifetime income pool delivers the structural benefit available from mortality pooling, given the pool's size, governance design, and operating costs.
Pooling multiplier is the factor by which the income produced per dollar of premium increases when capital is contributed to a mortality pool rather than self-managed, holding planning horizon and assumed return constant.
