.. module:: simplelife .. _project_simplelife: Project **simplelife** ====================== This project includes the **simplelife** model, which is an annual projection model of basic traditional life policies. The simplelife model is designed in such a way that allows you to trace calculations for each individual model point, so it can be a good reference for building validation models. A simplelife model projects life insurance cashflows and their present values for policies represented by model points. Projected items include: * Premium income, * Commissions and expenses, * Benefit outgo. Cells for investment income, change in reserve and profits are included but not tested. The cashflow projection is carried out in the :mod:`~simplelife.model.Projection` Space. Most Cells in the :mod:`~simplelife.model.Projection` Spaces are defined in its base Spaces, :mod:`~simplelife.model.BaseProj` and :mod:`~simplelife.model.PV`. The :mod:`~simplelife.model.Projection` is parametrized with ``PolicyID``, so ``Projection[1]`` represents the Projection Space for Policy 1. The present values of the cashflow items are also calculated in the :mod:`~simplelife.model.Projection` Spaces. For example, the expression ``simplelife.Projection[1].PV_NetCashflow(0)`` returns the present value of net cashflows for Policy 1. The :mod:`~simplelife.model.Projection` Space has child Spaces, :mod:`~simplelife.model.Projection.Policy` and :mod:`~simplelife.model.Projection.Assumptions`. The :mod:`~simplelife.model.Projection.Policy` Space contains Cells representing policy attributes, such as product type, issue age, sum assured, etc. It also contains Cells for calculating policy values such as premium rates and cash surrender value rates. The :mod:`~simplelife.model.Projection.Assumptions` Space contains Cells to pick up assumption data for its model point. The :mod:`~simplelife.model.Input` Space is for storing input data read from the Excel input file, *input.xlsx*. Input data, such as: * model point data, * product specs, * actuarial assumptions, * economic scenarios, are read from an Excel input file, which is in the model folder. The Space contains References that hold `ExcelRange`_ objects. .. _ExcelRange: https://docs.modelx.io/en/latest/reference/dataclient.html#excelrange Premium rates are calculated using commutation functions and actuarial formulas. Commutation functions are calculated for each combination of mortality table IDs, sex and constant interest rates in LifeTable Spaces. Cash surrender values are calculated as net premium reserves net of surrender charges. The net premium reserves are calculated using the same commutation functions as the ones used by the premium rate calculation. .. warning:: The **simplelife** model is designed with a focus more on traceability than speed and is best suited for model validation. To build a fast model, you should take `the parallel modeling approach`_ as employed by :doc:`/projects/fastlife`. .. _the parallel modeling approach: http://modelx.io/blog/2020/12/12/introduction-to-fastlife-and-parallel-modeling/ How to use the project ----------------------- Create a project folder from IPython in Spyder. as explained in :ref:`create-a-project` section. Read the model in Spyder by following the steps in :ref:`read-a-model` section. The model become accessible as ``simplelife`` global variable in the IPython console in Spyder. There is no explicit 'Run' command to run the model. The model calculates its values on the fly, when requested. Model structure --------------- Composition Structure ^^^^^^^^^^^^^^^^^^^^^ The diagram below shows the spaces in the simplelife model. .. blockdiag:: blockdiag { default_node_color="#D5E8D4"; default_linecolor="#628E47"; node_width=150; simplelife [shape=roundedbox, linecolor="#7B99C5", color="#D4E8FC", width=96] Proj [label="Projection\n[PolicyID, ScenID=1]", stacked]; simplelife <- Proj [hstyle=composition]; Econ[label="Economic[ScenID]", stacked]; simplelife <- Econ[hstyle=composition]; Proj <- Assumptions [hstyle=composition]; Proj <- Policy [hstyle=composition]; LifeTable [label="LifeTable\n[Sex, IntRate, TableID]", stacked]; simplelife <- LifeTable [hstyle=composition]; simplelife <- Input [hstyle=composition]; simplelife <- BaseProj BaseProj[style=dotted] simplelife <- PV PV[style=dotted] } Inheritance Structure ^^^^^^^^^^^^^^^^^^^^^ The :mod:`~simplelife.model.Projection` Space inherits from :mod:`~simplelife.model.BaseProj` and :mod:`~simplelife.model.PV`. .. blockdiag:: blockdiag { default_node_color="#D5E8D4"; default_linecolor="#628E47"; BaseProj[style=dotted] BaseProj <- Projection [hstyle=generalization] PV[style=dotted] PV<- Projection [hstyle=generalization]; } Jupyter Notebooks ----------------- A live version of the Jupyter notebook below is available online, thanks to Binder. *Launch this sample now!* * simplelife Space Overview |binder simplelife_space_overview| .. include:: /binderlinks.rst :start-after: Begin binder banner :end-before: End binder banner .. toctree:: simplelife-space-overview Space Details ------------- .. autosummary:: :toctree: generated/ :template: llmodule.rst ~model.Input ~model.LifeTable ~model.Economic ~model.BaseProj ~model.PV ~model.Projection ~model.Projection.Policy ~model.Projection.Assumptions