The step -by -step experience of pension savings is considered. The considered model includes benefits, expenses, bonuses, economic reserves and poured investments. Various aspects of this model are considered.
A thorough analysis is provided.
Keywords: Profit testing model, tariff and reserve base, profit signature, capital cost, expected modern profit, expected modern cost of bonuses, profit margin, discounted self -sufficiency period.
Cash flows during the operation of the pension insurance contract
When an insurance company is developing a pension product, many structural units – marketers, specialists in insurance products, financiers and relevance are involved in this process. Not only the time and professionalism of specialists are invested in the created product, but also cash. Since it is intended for sale, the new pension product becomes a product and therefore must make a profit.
How to find out whether the product will be profitable or not? Pension insurance in itself is a very difficult type of insurance that requires cautious approaches. During the implementation, its company may face difficulties not only in terms of the cost of launching and maintaining the product, but also with the choice of an adequate mortality table, profitability, and other assumptions.
And if the pension product is profitable, then what will be the volume of expected profit? If for every thousand rubles the company will receive one ruble of profit, ten rubles or one hundred rubles, whether it will be acceptable? Or the company management will conclude that a small income in the future does not cost such significant costs in the present?
How quickly a new product will pay off? After all, the sooner the insurance company returns invested funds, the faster it will be able to invest them in a new project. And if the payback occurs only at the end of the insurance period, then the question will probably arise about refusing to develop such pension insurance programs.
There are a number of questions that need to pay attention to when introducing a pension product. Here is some of them.
What should be the costs of the company for the conclusion of the insurance contract and its maintenance, the commission and its distribution by the insurance years, in order to reach the payback after a certain period of time? What to establish guarantees for the return on investment in order to ensure the fulfillment of financial obligations adopted and at the same time be competitive in the insurance market? What approach to apply to the payment of redemption amounts?
Answers to such questions can be found by testing profit. Profit testing is a method that describes payments during the insurance contract. It allows you to evaluate the current value of future profits (assess the amount of profit, taking into account the mortality rate of insured persons, various kinds of expenses and profitability of investments) under a specific insurance contract or a homogeneous portfolio of contracts. This method also allows you to obtain a number of indicators characterizing the insurance contract or portfolio of contracts. Comparing these indicators with pre -set values (criteria), we can conclude that the economic expediency of the new product and decide on its development and implementation. Changing the values of the parameters used in testing, for example, such as mortality, expenses, profitability of investments, assumptions at the rates of early termination of the contract, you can determine the level of the variable parameter (parameters), in which the product satisfies the above criteria and, at the same time, is competitive in the insurance market.
