CIRC Embedded Value Reporting Taskforce Workshop（42页）.ppt

Model Building
CIRC Embedded Value Reporting Taskforce Workshop
This document is incomplete without the accompanying discussion; it is confidential 
and intended solely for the information and benefit of the immediate recipient
 hereof.
17 March 2006
Soo Meng Foo 
Contents
Model Building Process
Data Processing
Program Product Features
Validation of Models and Projections
Planning Runs and Compilation of Results
Documentation
1. Model Building Process
Inforce data
by Policy
Product
Information
New Business
data by Policy
Experience
Data
Balance Sheet
Company 
Business Plan
Product
Description
Report
Data
Processing
Data
Processing
Experience
Investigations
New Business
Volumes
Adjusted Net
Worth
Select Inforce
Model Points
Select New 
Business
Model Points
Program Product Features
Assumption
Set
Value of 
Inforce
Existing
Structure
Value
Appraisal
Valuation
One Off items
e.g. Expense 
Overrun
Validate
Model
Inforce
Projections
New Business
Projections
2. Data Processing
Inforce data
by Policy
Product
Information
New Business
data by Policy
Experience
Data
Balance Sheet
Company 
Business Plan
Product
Description
Report
Data
Processing
Data
Processing
Experience
Investigations
New Business
Volumes
Adjusted Net
Worth
Select Inforce
Model Points
Select New 
Business
Model Points
Program Product Features
Assumption
Set
Value of 
Inforce
Existing
Structure
Value
Appraisal
Valuation
One Off items
e.g. Expense
Overrun
Validate
Model
Inforce
Projections
New Business
Projections
2. Data Processing (cont’d)
The ultimate aim of data processing is to produce a set of model