LifeInsuranceContracts (version 0.0.2)

initializeCosts: Initialize a data structure for the definition of InsuranceTarif costs

Description

Initialize a cost matrix with dimensions: CostType, Basis, Period, where:

CostType:

alpha, Zillmer, beta, gamma, gamma_nopremiums, unitcosts

Basis:

SumInsured, SumPremiums, GrossPremium, NetPremium, Constant

Period:

once, PremiumPeriod, PremiumFree, PolicyPeriod

This cost structure can then be modified for non-standard costs. The main purpose of this structure is to be passed to InsuranceContract or InsuranceTarif definitions.

Usage

initializeCosts(
  costs,
  alpha,
  Zillmer,
  beta,
  gamma,
  gamma.paidUp,
  gamma.premiumfree,
  gamma.contract,
  unitcosts,
  unitcosts.PolicyPeriod
)

Arguments

costs

(optional) existing cost structure to duplicate / use as a starting point

alpha

Alpha costs (charged once, relative to sum of premiums)

Zillmer

Zillmer costs (charged once, relative to sum of premiums)

beta

Collection costs (charged on each gross premium, relative to gross premium)

gamma

Administration costs while premiums are paid (relative to sum insured)

gamma.paidUp

Administration costs for paid-up contracts (relative to sum insured)

gamma.premiumfree

Administration costs for planned premium-free period (reltaive to sum insured)

gamma.contract

Administration costs for the whole contract period (relative to sum insured)

unitcosts

Unit costs (absolute monetary amount, during premium period)

unitcosts.PolicyPeriod

Unit costs (absolute monetary amount, during full contract period)

Examples

# NOT RUN {
# empty cost structure (only 0 costs)
initializeCosts()

# the most common cost types can be given in initializeCosts()
initializeCosts(alpha = 0.04, Zillmer = 0.025, beta = 0.05, gamma.contract = 0.001)

# The same cost structure manually
costs.Bsp = initializeCosts();
costs.Bsp[["alpha", "SumPremiums", "once"]] = 0.04;
costs.Bsp[["Zillmer", "SumPremiums", "once"]] = 0.025;
costs.Bsp[["beta", "GrossPremium", "PremiumPeriod"]] = 0.05;
costs.Bsp[["gamma", "SumInsured", "PolicyPeriod"]] = 0.001;



# }