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:
Commissions and expenses,
Cells for investment income, change in reserve and profits are included but not tested.
The cashflow projection is carried out in the
Most Cells in the
Projection Spaces are defined in its base Spaces,
Projection is parametrized with
Projection represents the Projection Space for Policy 1.
The present values of the cashflow items are also calculated in
For example, the expression
returns the present value of net cashflows for Policy 1.
Projection Space has child Spaces,
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.
Assumptions Space contains Cells to pick up assumption data for
its model point.
Input Space is for storing input data read from the Excel input file,
Input data, such as:
model point data,
are read from an Excel input file, which is in the model folder. The Space contains References that hold ExcelRange objects.
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.
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 Project fastlife.
How to use the project¶
The model become accessible
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.
The diagram below shows the spaces in the simplelife model.
A live version of the Jupyter notebook below is available online, thanks to Binder.
Launch this sample now!
Input from files
Commutation functions and actuarial notations
Base Space for the
Present Value mix-in Space
Space for cashflow projection.
Policy attributes and policy values
Assumption input and calculations for individual policies.