Model BasicTerm_S¶
The models are monthly-step new business models. The models are new business model, i.e. all model points are entered at the same time.
Basic Usage by Spyder with modelx plugin¶
To read the model into IPython session and assigns it to model:
>>>
Basic model specs¶
This is a new business model and all model points are issued at time 0.
The time step of the model is monthly. Cashflows and other time-dependent
variables are indexed with t.
Cashflows and other flows that accumulate throughout a period
indexed with t denotes the sums of the flows from t til t+1.
Balance items indexed with t denotes the amount at t.
Model point data¶
The model point data is stored in an Excel file named model_point_table.xlsx under the model folder.
Assumptions¶
Mortality rates are stored in an Excel file named mort_table.xlsx under the model folder.
Discount rates are given in an Excel file named disc_rate_ann.xlsx
For other assumptions, such as lapse, expenses and commissions, input parameters are given directly in cells’ formulas by default.
Policy values¶
Policy decrement¶
The initial number of policies is set to 1 per model point by default, and decreases through out the policy term by lapse and death. At the end of the policy term the remaining number of policies mature.
Cashflows¶
The monthly premium per policy is calculated for each policy as (1 + loading) times the net premium. The net premium is calculated so that the present value of the net premiums equals to the sum of the present values of claims, expenses and commissions.
The amount of death benefit for each policy is set equal to the sum assured by default.
This product is assumed to have no surrender value.
An acquisition expense at t=0 and maintenance expenses thereafter comprise expense cashflows.
Commissions are assumed to be paid out during the first year and the commission amount is assumed to be 100% premium during the first year and 0 afterwards.