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Standard Specification

Fumito Hamamura edited this page Jan 23, 2021 · 2 revisions

Standard Product Specification

Product Types

  • Type A: Traditional (Term, Whole Life)
  • Type B: Investment-linked (Variable Annuity or Unit-linked)

Type A

  • Policy Period: N Years, Whole Life

Premiums

  • Payment Frequency: Monthly, Annual
  • Payment Period: Whole Term, Short paid-up

Benefits

  • Define Death Benefit: Sum Assured
  • Surrender Benefit: TBD

Type B

Premiums

  • Single Premium

Benefits

  • Death Benefit: TBD
  • Surrender Benefit: TBD
  • Maturity Benefit: TBD

Standard Model Specification

Input Data

Model Points

  • Data file format
  • Policy Attributes, Issue Date, Age, Sex
  • Policy Term
  • Number of model points: TBD

(TBD) Product Specs

  • Data file format
  • Commission data

Assumptions

  • Data file format
  • Mortality tables
  • Surrender rate tables
  • Discount rate table

Projection

Time Steps

  • TBD: Monthly or Monthly + Annual
  • Calendar Date Treatment

Decrement

  • In-force at time 0
  • New business
  • Death
  • Lapse
  • Maturity
  • Decrement timing

Cashflows

  • Premiums
  • Expenses
    • Commissions
    • Acquisition
    • Maintenance
  • Claims
    • Death Benefits
    • Surrender Benefits
    • Maturity Benefits

Discounting

  • Present Value of Net Cashflows

Output

  • Aggregated cashflows
  • Present values