Standard Specification

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