Net premium reserves play a fundamental role in actuarial calculations, ensuring that insurance companies can meet future liabilities. They represent the amount set aside to balance the insurer's obligations and policyholders' contributions over time. Understanding their calculation is crucial for anyone working with insurance models or cash flow projections.
In …
Buying a home is one of the biggest financial decisions in life. A real estate mortgage makes it possible, but how does it actually work? Everyone - not only actuaries- becomes very interested in the mechanics of a mortgage once they take one. Understanding how loan payments are structured and …
Model variables are fundamental to financial cash flow models, shaping how calculations unfold over time. In this blog post, we will explore different types of model variables and demonstrate how to create them using the cashflower package.
Understanding how to define and use model variables effectively is crucial for …
When working with actuarial cash flow models, runtime is a critical factor. With tight reporting deadlines, actuaries need results as quickly as possible without sacrificing accuracy. The speed of a model can significantly impact decision-making, especially when running multiple scenarios or handling large datasets.
In this post, we will explore …
Actuarial cash flow models predict future financial obligations, helping insurers assess risks and make informed decisions. One of the important aspects of building such models is determining the projection horizon, which defines how far into the future calculations should extend.
Choosing the right projection horizon involves balancing precision and …