Description: This session will include a brief outline of the origin of the tontine from when it was first introduced by the government of England in the 17th century through its disappearance in the early 20th century. As we explore the history of tontines, we will discuss their multiple references throughout English (and French) literature, often vilified by most authors using them as their subject, and how they bear little resemblance to the insurance product that many contemporary financial scholars advocate as a viable annuity concept for today and the future. The presenters will cover the practicality of reintroducing a modernized version of these longevity pooling arrangements (i.e., where aggregate longevity risk is shared among a group and not incurred by the issuer) as a retirement savings vehicle. They will also touch upon different aspects of tontines, such as risk management and regulatory issues.

Description: SECURE 2.0 included provisions that improve the ability of insurers to serve those who own qualified annuities. Several previously disallowed distribution methods are now allowed. These changes should increase the availability and desirability by contract owners to choose a payout annuity compared to required minimum distributions. An insurer considering enhancing qualified annuitization offerings might follow the approach outlined to potentially increase qualified annuitization sales and assist contract owners in protecting their principal more directly than previously.