Title

Annuity Profit Simulation

Document Type

Oral Presentation

Campus where you would like to present

Ellensburg

Event Website

https://digitalcommons.cwu.edu/source

Start Date

16-5-2019

End Date

16-5-2019

Abstract

We will present an R script for simulating a large number of whole life single annuity premiums prices for an insurance company, and to produce projected annual profits for the company. The program uses mortality data from the Society of Actuaries to create a life table which will calculate the annuity expected present value for given ages. The program accepts user input of a starting age range, maturity age, monthly annuity benefit, interest rate, number of policy holder lifetimes to generate, number of company years to simulate, and an ROI interest rate. Using the life table data and user input, the program creates a simulated number of policy holders’ lifetimes with random starting and death ages and their calculated premiums. This program also simulates a profit for a projected number of years to measure the insurance company’s annual profit. Several graphs and tables are produced to help illustrate these calculations. The calculations and design of this program were advised by Dr. Chin-Mei Chueh, actuarial science professor and Society of Actuaries council member, and Dr. Donald Davendra, computer science professor.

Faculty Mentor(s)

Donald Davendra

Department/Program

Computer Science

hooper_annuity_calculator.pptx (1030 kB)
Slides for SOURCE 2019 presentation McKinnon

Additional Files

hooper_annuity_calculator.pptx (1030 kB)
Slides for SOURCE 2019 presentation McKinnon

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May 16th, 12:00 AM May 16th, 12:00 AM

Annuity Profit Simulation

Ellensburg

We will present an R script for simulating a large number of whole life single annuity premiums prices for an insurance company, and to produce projected annual profits for the company. The program uses mortality data from the Society of Actuaries to create a life table which will calculate the annuity expected present value for given ages. The program accepts user input of a starting age range, maturity age, monthly annuity benefit, interest rate, number of policy holder lifetimes to generate, number of company years to simulate, and an ROI interest rate. Using the life table data and user input, the program creates a simulated number of policy holders’ lifetimes with random starting and death ages and their calculated premiums. This program also simulates a profit for a projected number of years to measure the insurance company’s annual profit. Several graphs and tables are produced to help illustrate these calculations. The calculations and design of this program were advised by Dr. Chin-Mei Chueh, actuarial science professor and Society of Actuaries council member, and Dr. Donald Davendra, computer science professor.

https://digitalcommons.cwu.edu/source/2019/Oralpres/191