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Old 08-04-2017, 05:41 PM
wang123456chen wang123456chen is offline
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Default EOM 6: 20 tabs in the spread sheet

I am not sure what 5 issue age(25,35,45,55,65) means. Why there are only 5 issue age instead of input any age and generate cash flow for that age?
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Old 08-04-2017, 06:18 PM
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I am not sure what 5 issue age(25,35,45,55,65) means. Why there are only 5 issue age instead of input any age and generate cash flow for that age?
They designed the model with only 5 issue ages. As far as why, you would have to ask Paice. Obviously you cannot do that but you can recommend that more ages/tabs be added to the model.
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Old 08-04-2017, 07:21 PM
wang123456chen wang123456chen is offline
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They designed the model with only 5 issue ages. As far as why, you would have to ask Paice. Obviously you cannot do that but you can recommend that more ages/tabs be added to the model.
I am confused about that 20 tab. In practise, I think it always needs to input age and sex, then automatically get the premium and cash flow. Why it need use 20 tab for it, which cause some limit ?
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Old 08-07-2017, 02:50 PM
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I am confused about that 20 tab. In practise, I think it always needs to input age and sex, then automatically get the premium and cash flow. Why it need use 20 tab for it, which cause some limit ?
There are tabs for each age grouping (5 of them), so you have 5 tabs for male smokers, 5 tabs for male non-smokers, 5 tabs for female smokers, and 5 tabs for female non-smokers. 20 calculation sheets in all.
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Old 08-08-2017, 12:21 AM
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There are tabs for each age grouping (5 of them), so you have 5 tabs for male smokers, 5 tabs for male non-smokers, 5 tabs for female smokers, and 5 tabs for female non-smokers. 20 calculation sheets in all.
So what about age 33 for example? the 5 age grouping does not have age 33
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Old 08-08-2017, 12:36 AM
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So what about age 33 for example? the 5 age grouping does not have age 33
You are correct that age 33 is not in one of the tabs. Any age outside of (25,35,45,55,65) does not have a tab and is not modeled. Only ages (25,35,45,55,65) are modeled. If you think more age groups (and tabs) need to be modeled then you should mention that in you write up. Just remember to make your recommendation clear and support it.
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Old 08-08-2017, 10:06 AM
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You are correct that age 33 is not in one of the tabs. Any age outside of (25,35,45,55,65) does not have a tab and is not modeled. Only ages (25,35,45,55,65) are modeled. If you think more age groups (and tabs) need to be modeled then you should mention that in you write up. Just remember to make your recommendation clear and support it.
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Old 08-21-2017, 11:50 AM
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You are correct that age 33 is not in one of the tabs. Any age outside of (25,35,45,55,65) does not have a tab and is not modeled. Only ages (25,35,45,55,65) are modeled. If you think more age groups (and tabs) need to be modeled then you should mention that in you write up. Just remember to make your recommendation clear and support it.
My daily work is actually with UL pricing, so I'm familiar with this methodology.
Using age bands is a simplification that makes it easier to process projections.
In this case, the age bands would be like this: [20,29],[30,39],[40,49],[50,59],[60,69], where age issue age 33 would fall in with the 35 age band, [30,39].
Imagine if this Excel-based model had a separate tab for every single issue age for each gender and risk class cohort (~201, including a summary tab). This model would be impossible to navigate and would likely crash often. In my mind, 20 tabs is already too much, but it is probably the easiest to follow the formulas on the summary tab this way. I would suggest combining all of the splits by issue age into one gender-class split tab, stacking the different age band cohorts, and using offsets to reference the correct results.
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