1. 

   Viki2010 Member

   I have come across this concept while doing some past papers. Can someone please explain when can we talk about a "tontine effect" in insurance business?

    

   Viki2010, Oct 2, 2015

   #1
2. 

   Em Francis ActEd Tutor Staff Member

   Hi
   
   

   
   The phrase "tontine effect" refers to a fund where a large windfall goes to the last survivor. For example this could happen with the inherited estate of a with-profits fund. However it will depend on how well the estate was managed and this will be described in the PPFM.
   Hope this helps.
   
   Thanks
   Em

    

   Em Francis, Oct 5, 2015

   #2

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