LifeInsuranceContracts (version 0.0.2)

InsuranceContract.ParameterDefaults: Default parameters for the InsuranceContract class. A new contract will be pre-filled with these values, and values passed in the constructor (or with other setter functions) will override these values.

Description

Default parameters for the InsuranceContract class. A new contract will be pre-filled with these values, and values passed in the constructor (or with other setter functions) will override these values.

Usage

InsuranceContract.ParameterDefaults

Format

The parameter list is a list of lists with the following structure:

Sublists:

• $ContractData ... Contract-specific data (policy period, closing, age, sum insured, premium payments, etc.)

• $ContractState ... Current contract state (paid-up, surrender penalty already applied, alpha costs already (partially) refunded)

• $ActuarialBases ... Actuarial bases for the contract calculation (mortality/invalidity table, guaranteed interest, surrender penalty, etc.)

• $Costs ... Expenses charged to the contract (see initializeCosts())

• $Loadings ... Loadings, rebates and other charges of the tariff / contract (tax, unit costs, surcharge for no medial exam, premium/benefit frequency loading)

• $Features ... Peculiarities of the tariff (to enable non-standard formulas for certain company-specific historical "glitches" in the tariff definitions.)

• $ProfitParticipation ... Profit scheme and profit participation rates (default values, can be overwritten per profit scenario)

• $Hooks ... Hook functions to allow modification of various calculation aspects (e.g. modify the default cash flows after their setup)

Elements of sublist InsuranceContract.ParameterDefault$ContractData

These values are typically set per contract and not by the tariff. Notable exceptions are the contract duration in some instances and the premiumPeriod=1 for single-premium contracts.

$id

ID of the contract (to distinguish individual parts in contracts with multiple parts, e.g. dynamic increases), default = "Hauptvertrag"

$sumInsured

Sum insured, default = 100,000

$YOB

Year of birth of the insured, used to determine the age for the application of the mortality table

$age

Age of the insured

$technicalAge

Technical age of the insured (when the age for the application of the mortality table does not coincide with the real age)

$ageDifferences

Vector of age differences to the first insured for contracts with multiple insured (i.e. joint-lives)

$sex

Sex of the insured, to allow gender-specific prixing (e.g. different mortalities or age modification), default="unisex", Type is SexEnum

$policyPeriod

Policy Duration (in years)

$premiumPeriod

Premium payment period (in year), for single-premium contracts, premiumPeriod = 1. Default is policyPeriod, i.e. regular premiums during the whole contract period

$deferralPeriod

deferral period for annuities, i.e. the period survival payments start only after this period, typically the retirement age. This applies mostly to tariffs of type annuity, although deferral periods are possible (but not common) for all other types of insurance, too.

$guaranteedPeriod

guaranteed annuity payment period. The annuity pays out for this period, even if the insured dies. This applies only to tariffs of type annuity.

$contractClosing

The date (variable of type Date) when the coverage of the contract starts (not neccessarily equal to the date when the contract was signed). Typically generated by a call to as.Date(). The year is relevant to derive the age of the insured, while month and day are relevant for the interpolation of the balance sheet reserves

$blockStart

For contracts with multiple blocks (e.g. multiple dynamic increases, where each increase is modelled like a separate contract), this variable holds the offset of the current contract block relative to the main contract block. The main block starts a 0, dynamic increases start later! This value is only used by the parent block (i.e. $t=0$ of the child is aligned with $t=blockStart$ of the parent block.

$premiumPayments

Whether premiums are paid in advance (default) or arrears. Value is of type PaymentTimeEnum with possible values "in advance" and 'in arrears"

$benefitPayments

Whether recurring benefits (e.g. annuities) are paid in advance (default) or arrears. Value is of type PaymentTimeEnum with possible values "in advance" and "in arrears"

$premiumFrequency

Number of premium payments per year, default is 1.

$benefitFrequency

Number of benefit payments per year, default is 1.

$widowProportion

For annuities with a widow transition, this describes the factor of the widow benefits relative to the original benefit.

$deathBenefitProportion

For endowments with a death and survival benefit, this describes the proportion of the death benefit relative to the survival benefit.

$premiumRefund

Proportion of (gross) premiums refunded on death (including additional risk, e.g. 1.10 = 110% of paid premiums)

$premiumIncrease

The yearly growth factor of the premium, i.e. 1.05 means +5% increase each year; a vector describes the premiums for all years

$annuityIncrease

The yearly growth factor of the annuity payments, i.e. 1.05 means +5% increase each year; a vector describes the annuity unit payments for all years

$deathBenefit

The yearly relative death benefit (relative to the initial sum insured); Can be set to a function(len, params, values), e.g. deathBenefit = deathBenefit.linearDecreasing

Elements of sublist InsuranceContract.ParameterDefault$ContractState

Contract-specific status variables holding the status of the contract.

$premiumWaiver

Whether the contract is paid-up.

$surrenderPenalty

Whether a surrender penalty still applies (e.g. because it has already been applied during a contract change, or because due to legal reasons it can no longer be applied)

$alphaRefunded

Whether alpha costs have (at least partially) been refunded (e.g. when a contract is changed or paid-up). Default is not yet refunded.

Elements of sublist InsuranceContract.ParameterDefault$ActuarialBases

Tarif-specific actuarial calculation parameters of the contract. Typically, these values are set by the tariff, but can be overridden by contract (e.g. while prototyping a new product or a product change).

$mortalityTable

The mortalityTable object describing the mortality of the insured

$invalidityTable

For contracts with invalidity benefits, the mortalityTable object describing the probabilities of invalidity

$invalidityEndsContract

For contracts with invalidity benefits, whether a payment of an invalidity benefit ends the contract.

$i

Guaranteed yearly interest rate, default is 0.00, i.e. 0%

$balanceSheetDate

The day/month when balance sheet reserves are calculated. Value of type Date, typically generated with as.Date(). The year is actually irrelevant, only the day and month are relevant.

$balanceSheetMethod

How to interpolate the balance sheet reserves (at the balandeSheetDate) from the yearly contractual reserves.

$surrenderValueCalculation

A function describing the surrender value calculation.

$premiumFrequencyOrder

Order of the approximation for payments within the year (unless an extra frequency loading is used => then leave this at 0)

$benefitFrequencyOrder

Order of the approximation for payments within the year (unless an extra frequency loading is used => then leave this at 0)

Elements of sublist InsuranceContract.ParameterDefault$Costs

Definition of contractual costs charged to the contract. See initializeCosts().

Elements of sublist InsuranceContract.ParameterDefault$Loadings

$ongoingAlphaGrossPremium

Acquisition cost that increase the gross premium

$tax

insurance tax, factor on each premium paid, default is 4%, i.e. i=0.04

$unitcosts

Annual unit cost for each policy, absolute value (can be a function)

$security

Additional security loading on all benefit payments, factor on all benefits

$noMedicalExam

Loading when no medicial exam is done, % of SumInsured

$noMedicalExamRelative

Loading when no medicial exam is done, % of gross premium

$sumRebate

gross premium reduction for large premiums, % of SumInsured

$extraRebate

gross premium reduction for any reason, % of SumInsured

$premiumRebate

gross premium reduction for large premiums, % of gross premium

$partnerRebate

Rebate on premium with all surcharges and rebates when more than one contract is written with identical parameters. Sums with advanceBonusInclUnitCost and premiumRebate.

$extraChargeGrossPremium

extra charges on gross premium (smoker, leisure activities, BMI too high, etc.)

$benefitFrequencyLoading

Loading on the benefit for premium payment frequencies of more than once a year. Format is list("1" = 0.0, "2" = 0.0, "4" = 0.0, "12" = 0.0)

$premiumFrequencyLoading

Loading on the premium for premium payment frequencies of more than once a year. Format is list("1" = 0.0, "2" = 0.0, "4" = 0.0, "12" = 0.0)

$alphaRefundPeriod

How long the acquisition costs should be (partially) refunded in case of surrender or premium waiver.

Elements of sublist InsuranceContract.ParameterDefault$Features

$betaGammaInZillmer

Whether beta and gamma-costs should be included in the Zillmer premium calculation

$alphaRefundLinear

Whether the refund of alpha-costs on surrender is linear in t or follows the NPV of an annuity

Elements of sublist InsuranceContract.ParameterDefault$ProfitParticipation

Parameters describing the profit participation (instance of ProfitParticipation) Most element descrive some kind of profit rate (which can vary in time), while the bases, on which they are applied is defined in the profit scheme.

$advanceProfitParticipation

Advance profit participation rate (percentage rebate of the gross premium)

$advanceProfitParticipationInclUnitCost

Advance profit participation rate (percentage rebate on the gross premium after all surcharges and unit costs.

$waitingPeriod

Waiting period of the profit sharing (e.g. no profit in the first two years of a contract, or similar)

$guaranteedInterest

Individual contract-specific overrides of the guaranteed interest rate (i.e. not keyed by year)

$interestProfitRate

Interest profit rate (guaranteed interest rate + interest profit rate = total credited rate)

$totalInterest

Total credited rate (guarantee + interest profit)

$mortalityProfitRate

Mortality Profit rate

$expenseProfitRate

Expense profit rate

$sumProfitRate

Sum profit rate (for high sumInsured)

$terminalBonusRate

Terminal bonus rate (non-terminal-bonus fund, but "old" Austrian terminal bonus)

$terminalBonusFundRate

Terminal bonus fund rate

$profitParticipationScheme

Profit participation scheme (object of class ProfitParticipation)

$profitComponents

Profit components of the profit scheme. List containing one or more of c("interest", "risk", "expense", "sum", "terminal")

$profitClass

String describing the profit class the tariff is assigned to. Profit classes are used to bundle similar contracts (e.g. following similar risks) together. Profit participation rates are defined at the level of profit classes.

$profitRates

General, company-wide profit rates, key columns are year and profitClass

\item{\code{$scenarios}}{profit participation scenarios (list of overridden parameters for each scenario)}

Elements of sublist InsuranceContract.ParameterDefault$Hooks

$adjustCashFlows

Function with signature function(x, params, values, ...) to adjust the benefit/premium cash flows after their setup.

$adjustCashFlowsCosts

Function with signature function(x, params, values, ...) to adjust the costs cash flows after their setup.

Examples

# NOT RUN {
InsuranceContract.ParameterDefaults
# }