From 1e0cc03162f36af9de97df975f3c92c8262f40cb Mon Sep 17 00:00:00 2001
From: Reinhold Kainhofer <reinhold@kainhofer.com>
Date: Fri, 26 Nov 2021 23:47:41 +0100
Subject: [PATCH] Allow (premium|benefit)FrequencyLoading to be a function or a
fixed value; set premiumFrequencyOrder to -1 if loading is given
The (premium|benefit)FrequencyLoading parameters are evaluated using a new function evaluateFrequencyLoading, which handles functions, named lists, and fixed values.
Also, set premiumFrequencyOrder automatically to -1 (i.e. no adjustment due to multiple payments per yer) when a loading is given.
---
R/InsuranceParameters.R | 8 ++++----
R/InsuranceTarif.R | 43 +++++++++++++++++++++++++++++++----------
man/InsuranceTarif.Rd | 30 ++++++++++++++++++++++++++++
3 files changed, 67 insertions(+), 14 deletions(-)
diff --git a/R/InsuranceParameters.R b/R/InsuranceParameters.R
index ba76034..79a4937 100644
--- a/R/InsuranceParameters.R
+++ b/R/InsuranceParameters.R
@@ -548,8 +548,8 @@ InsuranceContract.ParameterDefaults = list(
surrenderValueCalculation = NULL, # By default no surrender penalties
premiumWaiverValueCalculation = NULL, # By default, surrender value will be used
- premiumFrequencyOrder = 0, # Order of the approximation for payments within the year (unless an extra frequency loading is used => then leave this at 0)
- benefitFrequencyOrder = 0
+ premiumFrequencyOrder = function(params, ...) { if (is.null(params$Loadings$premiumFrequencyLoading)) 0 else -1}, # Order of the approximation for payments within the year (unless an extra frequency loading is used => then leave this at 0)
+ benefitFrequencyOrder = function(params, ...) { if (is.null(params$Loadings$benefitFrequencyLoading)) 0 else -1}
),
Costs = initializeCosts(),
minCosts = NULL, # Base costs, which cannot be waived
@@ -565,8 +565,8 @@ InsuranceContract.ParameterDefaults = list(
premiumRebate = 0, # gross premium reduction for large premiums, % of gross premium # TODO
partnerRebate = 0, # Partner rabate on premium (including loading and other rebates) if more than one similar contract is concluded
extraChargeGrossPremium = 0, # extra charges on gross premium (smoker, leisure activities, BMI too high, etc.)
- benefitFrequencyLoading = list("1" = 0.0, "2" = 0.0, "4" = 0.0, "12" = 0.0), # TODO: Properly implement this as a function
- premiumFrequencyLoading = list("1" = 0.0, "2" = 0.0, "4" = 0.0, "12" = 0.0), # TODO: Properly implement this as a function
+ benefitFrequencyLoading = NULL, # TODO: Properly implement this as a function
+ premiumFrequencyLoading = NULL, # TODO: Properly implement this as a function
alphaRefundPeriod = 5 # How long acquisition costs should be refunded in case of surrender
),
Features = list( # Special cases for the calculations
diff --git a/R/InsuranceTarif.R b/R/InsuranceTarif.R
index a3e5362..ec977de 100644
--- a/R/InsuranceTarif.R
+++ b/R/InsuranceTarif.R
@@ -665,12 +665,12 @@ InsuranceTarif = R6Class(
i = params$ActuarialBases$i;
v = 1/(1 + i);
- benefitFreqCorr = correctionPaymentFrequency(i = i,
- m = params$ContractData$benefitFrequency,
- order = params$ActuarialBases$benefitFrequencyOrder);
- premiumFreqCorr = correctionPaymentFrequency(i = i,
- m = params$ContractData$premiumFrequency,
- order = params$ActuarialBases$premiumFrequencyOrder);
+ benefitFreqCorr = correctionPaymentFrequency(
+ i = i, m = params$ContractData$benefitFrequency,
+ order = valueOrFunction(params$ActuarialBases$benefitFrequencyOrder, params = params, values = values));
+ premiumFreqCorr = correctionPaymentFrequency(
+ i = i, m = params$ContractData$premiumFrequency,
+ order = valueOrFunction(params$ActuarialBases$premiumFrequencyOrder, params = params, values = values));
pvRefund = calculatePVDeath(px, qx, values$cashFlows$death_GrossPremium, v = v);
pvRefundPast = calculatePVDeath(
@@ -1011,14 +1011,14 @@ InsuranceTarif = R6Class(
values$premiums[["unitcost"]] = premium.unitcosts;
- frequencyLoading = valueOrFunction(loadings$premiumFrequencyLoading, params = params, values = values);
+ frequencyLoading = self$evaluateFrequencyLoading(loadings$premiumFrequencyLoading, params$ContractData$premiumFrequency, params = params, values = values)
premiumBeforeTax = (values$premiums[["unit.gross"]]*(1 + noMedicalExam.relative + extraChargeGrossPremium) + noMedicalExam - sumRebate - extraRebate) * sumInsured * (1 - advanceProfitParticipation);
if (params$Features$unitcostsInGross) {
premiumBeforeTax = premiumBeforeTax + premium.unitcosts;
}
premiumBeforeTax = premiumBeforeTax * (1 - premiumRebate - advanceProfitParticipationUnitCosts - partnerRebate);
# TODO / FIXME: Add a check that frequencyLoading has an entry for the premiumFrequency -> Otherwise do not add any loading (currently NULL is returned, basically setting all premiums to NULL)
- premiumBeforeTax.y = premiumBeforeTax * (1 + frequencyLoading[[toString(params$ContractData$premiumFrequency)]]);
+ premiumBeforeTax.y = premiumBeforeTax * (1 + frequencyLoading);
premiumBeforeTax = premiumBeforeTax.y / params$ContractData$premiumFrequency;
values$premiums[["written_yearly"]] = premiumBeforeTax.y * (1 + tax)
values$premiums[["written_beforetax"]] = premiumBeforeTax;
@@ -1352,9 +1352,9 @@ InsuranceTarif = R6Class(
afterRebates = afterProfit + rebate.premium + rebate.partner;
# premium frequency loading
- frequencyLoading = valueOrFunction(params$Loadings$premiumFrequencyLoading, params = params, values = values);
+ frequencyLoading = self$evaluateFrequencyLoading(loadings$premiumFrequencyLoading, params$ContractData$premiumFrequency, params = params, values = values)
- afterFrequency = afterRebates * (1 + frequencyLoading[[toString(params$ContractData$premiumFrequency)]]);
+ afterFrequency = afterRebates * (1 + frequencyLoading);
charge.frequency = afterFrequency - afterRebates;
# insurance tax
@@ -1481,6 +1481,29 @@ InsuranceTarif = R6Class(
apply(values, 2, pv)
},
+ #' @description Calculate the premium frequency loading, i.e. the surcharge
+ #' on the premium for those cases where the premium is not paid yearly.
+ #' Return values can be either a numeric value or a named list with all
+ #' possible premium frequencies as keys.
+ #' @param loading The premiumFrequencyLoading parameter of the Contract or Tariff to be evaluated
+ #' @param frequency The premiumFrequency parameter of the contract
+ evaluateFrequencyLoading = function(loading, frequency, params, values) {
+ frequencyLoading = valueOrFunction(loading, frequency = frequency, params = params, values = values);
+ if (is.null(frequencyLoading)) {
+ 0
+ } else if (is.list(frequencyLoading)) {
+ if (as.character(frequency) %in% names(frequencyLoading)) {
+ frequencyLoading[[as.character(frequency)]]
+ } else {
+ warning("Unable to handle premium frequency ", frequency, " with the given loading ", frequencyLoading);
+ }
+ } else if (is.numeric(frequencyLoading)) {
+ frequencyLoading
+ } else {
+ warning("premiumFrequencyLoading must be a number or a named list, given: ", frequencyLoading);
+ 0
+ }
+ },
diff --git a/man/InsuranceTarif.Rd b/man/InsuranceTarif.Rd
index 4dbdb55..07f8179 100644
--- a/man/InsuranceTarif.Rd
+++ b/man/InsuranceTarif.Rd
@@ -165,6 +165,7 @@ all fields.}
\item \href{#method-premiumDecomposition}{\code{InsuranceTarif$premiumDecomposition()}}
\item \href{#method-calculateFutureSums}{\code{InsuranceTarif$calculateFutureSums()}}
\item \href{#method-calculatePresentValues}{\code{InsuranceTarif$calculatePresentValues()}}
+\item \href{#method-evaluateFrequencyLoading}{\code{InsuranceTarif$evaluateFrequencyLoading()}}
\item \href{#method-clone}{\code{InsuranceTarif$clone()}}
}
}
@@ -1097,6 +1098,35 @@ scheme and the contract)}
}
}
\if{html}{\out{<hr>}}
+\if{html}{\out{<a id="method-evaluateFrequencyLoading"></a>}}
+\if{latex}{\out{\hypertarget{method-evaluateFrequencyLoading}{}}}
+\subsection{Method \code{evaluateFrequencyLoading()}}{
+Calculate the premium frequency loading, i.e. the surcharge
+on the premium for those cases where the premium is not paid yearly.
+Return values can be either a numeric value or a named list with all
+possible premium frequencies as keys.
+\subsection{Usage}{
+\if{html}{\out{<div class="r">}}\preformatted{InsuranceTarif$evaluateFrequencyLoading(loading, frequency, params, values)}\if{html}{\out{</div>}}
+}
+
+\subsection{Arguments}{
+\if{html}{\out{<div class="arguments">}}
+\describe{
+\item{\code{loading}}{The premiumFrequencyLoading parameter of the Contract or Tariff to be evaluated}
+
+\item{\code{frequency}}{The premiumFrequency parameter of the contract}
+
+\item{\code{params}}{Contract-specific, full set of parameters of the contract
+(merged parameters of the defaults, the tariff, the profit participation
+scheme and the contract)}
+
+\item{\code{values}}{Contract values calculated so far (in the \code{contract$Values}
+list) then this method is called by the contract object}
+}
+\if{html}{\out{</div>}}
+}
+}
+\if{html}{\out{<hr>}}
\if{html}{\out{<a id="method-clone"></a>}}
\if{latex}{\out{\hypertarget{method-clone}{}}}
\subsection{Method \code{clone()}}{
--
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