This chapter provides information about Insurance Actuarial Policy Summary, Mortality and Morbidity tables, and several Insurance Lapse Rate Assumptions Result tables in the Oracle Insurance Data Foundation Application.
Topics:
· Actuarial Assumptions Dimension Tables
· Financial Assumptions Tables
· Demographic Assumptions Tables
· Deploying Actuarial Assumptions Tables on Hive
· Populating Actuarial Assumptions Dimension Tables
· Populating Actuarial Assumptions T2T Result Tables
An actuarial assumption is an estimate of an uncertain variable input into a financial model, normally for the purposes of calculating premiums or benefits.
Actuarial Assumption Dimension table names and their description are given here.
Logical Dimension Table Name |
Dimension Table Description |
|---|---|
Actuarial Assumption Dimension |
This table stores the name of the set of Actuarial Assumptions used for valuations. While the Actuarial valuation code can remain the same, parameters for the same can change for different valuation dates. |
Premium Rate Dimension |
This table stores the details of the Premium rate. Premium tables provide premium rates for a given premium basis amount. |
The mapping details for the Actuarial Assumption Dimension tables are given here.
Map Reference Number |
Source Table Name |
Logical Stage Table Name |
Dimension Table Name |
Logical Dimension Table Name |
|---|---|---|---|---|
683 |
STG_ACTUARIAL_ASSUMPTN_MASTER |
Stage Actuarial Assumption Master |
DIM_ACTUARIAL_ASSUMPTN |
Actuarial Assumption Dimension |
733 |
STG_PREMIUM_RATE_TABLE_MASTER |
Stage Premium Rate Master |
DIM_PREMIUM_RATE_TABLE |
Premium Rate Dimension |
There are two types of Insurance Actuarial Assumptions tables:
· Financial Assumptions Tables
· Demographic Assumptions Tables
Financial assumptions evaluate the projected benefits of the Party or organization in a certain plan. These financial assumptions include assumptions about interest rates, and lapse rate assumptions.
· Insurance Lapse Rate Assumptions
Insurance Lapse Rate is the rate at which insurance policy terminates because of the failure in premium payment by the policyholder. The Insurance Lapse Rate Assumptions table stores the insurance lapse rates to be used for assessment of insurance policies. The lapse rate group code binds multiple lapse rates under one heading.
The purpose of the Insurance Lapse Rate Assumptions table is that the Insurers can set premiums which results in high or low-priced products.
· Interest Rate Curve (IRC)
Interest Rate Curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates.
Financial Assumptions include Insurance Lapse Rate Assumptions and Interest Rate Curve (IRC).
Topics:
· Interest Rate Curve Dimension Table
· Insurance Lapse Rate Assumptions Table
· Insurance Cost of Living Adjustments Table
Interest Rate Curve Dimension table name and its description are given here.
Logical Dimension Table Name |
Dimension Table Description |
|---|---|
Interest Rate Curve Dimension |
This table stores the interest rate curve definitions. |
The mapping details for the Interest Rate Curve Dimension table are given here.
Map Reference Number |
Source Table Name |
Logical Stage Table Name |
Dimension Table Name |
Logical Dimension Table Name |
|---|---|---|---|---|
246 |
STG_IRCS |
Stage Interest Rate Curve |
DIM_IRC |
Interest Rate Curve Dimension |
Insurance Lapse Rate Assumptions T2T and its description is given here.
T2T name |
T2T Description |
|---|---|
T2T_FCT_LAPSE_RATE_ASSUMPTIONS |
This T2T stores the insurance lapse rates, which is used for the valuation of insurance policies. This T2T stores the lapse rate group code that binds multiple lapse rates under one heading. |
The mapping details for the Insurance Lapse Rate Assumptions T2T is given here.
Source Table Name |
Logical Stage Table Name |
Fact Table Name |
Logical Fact Table Name |
T2T Name |
|---|---|---|---|---|
STG_INSURANCE_LAPSE_R ATES |
Stage Insurance Lapse Rates |
FCT_LAPSE_RATE_ASSUMPTIONS |
Fact Lapse Rate Assumptions |
T2T_FCT_LAPSE_RATE_ASSUMPTIONS |
The Insurance Cost of Living Adjustment Dimension table is used to determine the retirement, annuity, or other similar benefits. The methodology identifies a benchmark and based on benchmark movements, adjustment of living costs are published either by the government agency or the insurer.
Insurance Cost of Living Adjustment Dimension table name and its description is given here.
Logical Dimension Table Name |
Dimension Table Description |
|---|---|
Cost of Living Adjustment Dimension |
This table stores the code and benchmark details for the Cost of Living Adjustments definition. |
The mapping details for the Insurance Cost of Living Adjustment Dimension table is given here.
Map Reference Number |
Source Table Name |
Logical Stage Table Name |
Dimension Table Name |
Logical Dimension Table Name |
|---|---|---|---|---|
682 |
STG_COLA_ADJUSTMENT_MASTER |
Stage Cost of Living Adjustment Master |
DIM_COLA_ADJUSTMENT |
Cost of Living Adjustment Dimension |
Insurance Cost of Living Adjustment T2T and its description is given here.
T2T name |
T2T Description |
|---|---|
T2T_FCT_COLA_ADJUSTMENT_SCHEDULE |
This T2T stores the Cost of Living Adjustments for a given COLA definition and year of adjustment details. They are used to determine the retirement, annuity, or similar other benefits. |
The mapping details for the Insurance Cost of Living Adjustment T2T is given here.
Source Table Name |
Logical Stage Table Name |
Fact Table Name |
Logical Fact Table Name |
T2T Name |
|---|---|---|---|---|
STG_COLA_ADJUSTMENT_SCHEDULE |
Stage Cost of Living Adjustment Schedule |
FCT_COLA_ADJUSTMENT_SCHEDULE |
Fact Cost of Living Adjustment Schedule |
T2T_FCT_COLA_ADJUSTMENT_SCHEDULE |
When a person applies for a Life Insurance policy, their insurance company examines the results of their physical examination, their family health history, and lifestyle to determine if they fit into one of their standard categories or classifications.
For example, different types of categories are:
· Preferred Select: This classification usually refers to very healthy. In order to qualify for this level, you need to have a normal weight and height as well as no family factors that could lead to an early death. This category enjoys the lowest premiums and may also be called Preferred Elite or Preferred Plus.
· Standard Plus: These applicants are still in great health but a medical or lifestyle factor prevents them from qualifying for a Preferred Select. Being overweight, having high blood pressure or cholesterol issues could be the culprit.
· Standard: This is for everyone who is average when it comes to health. They have a normal life expectancy and could have weight issues or a parent that died early.
· Preferred Smoker: If you are a smoker who would normally fall into the preferred select category, this is where you will fall. Smokers will always pay more for life insurance so be prepared for a higher premium.
· Standard Smoker: A smoker who would fall into the standard category if they didn't smoke will be placed in this category.
When the Life Insurance applicant does not fit into one of the standard rating categories due to a health issue, risky occupation, or an adventurous lifestyle (think skydivers, rock climbers, and so on), they may end up with a table rating. Such records are categorized and stored in Premium Rate tables.
For information on how the risk factors affect the Insurance Underwriting of a Life Insurance applicant, see Insurance Underwriting Tables for Risk Analysis.
Premium Rate Dimension table name and its description are given here.
Logical Dimension Table Name |
Dimension Table Description |
|---|---|
Premium Rate Dimension |
This table stores the details of the Premium rate. Premium tables provide premium rates for a given premium basis amount. |
The mapping details for the Premium Rate Dimension table is given here.
Map Reference Number |
Source Table Name |
Logical Stage Table Name |
Dimension Table Name |
Logical Dimension Table Name |
|---|---|---|---|---|
733 |
STG_PREMIUM_RATE_TABLE_MASTER |
Stage Premium Rate Master |
DIM_PREMIUM_RATE_TABLE |
Premium Rate Dimension |
Premium Rate T2T name and its description are given here.
T2T Name |
T2T Description |
|---|---|
T2T_FCT_PREMIUM_RATE_TABLE_DTLS |
This T2T stores the Premium Rate table details. |
The mapping details for the Premium Rate T2T is given here.
Source Table Name |
Logical Stage Table Name |
Fact Table Name |
Logical Fact Table Name |
T2T Name |
|---|---|---|---|---|
STG_PREMIUM_RATE_TABLE_DTLS |
Stage Premium Rate Table Details |
FCT_PREMIUM_RATE_TABLE_DTLS |
Fact Premium Rate Table Details |
T2T_FCT_PREMIUM_RATE_TABLE_DTLS |
Demographic assumptions evaluate the projected benefits of all the parties or organizations in a certain plan. These demographic assumptions include assumptions about mortality, disability, termination of employment, and retirement.
Demographic Assumptions includes:
· Insurance Mortality
The Insurance Mortality is the amount charged by the Insurer for delivering the guaranteed Sum Assured on premature death of the policyholder.
The purpose of the Insurance Mortality table is to store the sum charged every year by the Insurer to the policyholder to deliver the life cover.
· Insurance for Morbidity
Morbidity on insurance terms is the insurance coverage provided by the insurer to the policyholder for the specified illness of the policyholder.
Topic:
· Insurance Mortality and Morbidity Tables
Insurance Mortality and Morbidity Dimension table names and their description are given here.
Logical Dimension Table Name |
Dimension Table Description |
|---|---|
Insurance Morbidity Dimension |
This table stores the morbidity rates. It is a statistical table used by actuaries in determining the incidence of illnesses and accidents and the longevity of the disability resulting therefrom. This is used in computing policy premiums and reserves. |
Insurance Mortality Dimension |
This table stores the mortality table required for insurance carriers. A 'Mortality Table' is the one that shows the rate of deaths occurring in a defined population during a selected time interval, or survival from birth to any given age. Statistics included in the mortality table show the probability of a person's death before their next birthday based on their age. Also known as the periodic table, this is based on the mortality experience of a population during a relatively short period of time. |
Insurance Mortality Multiplier Dimension |
This table stores the mortality multipliers’ names. Multipliers are generally calculated to reflect a more accurate estimation of mortality depending on growth in population and given rate of return. |
The mapping details for the Insurance Mortality and Morbidity Dimension tables are given here.
Map Reference Number |
Source Table Name |
Logical Stage Table Name |
Dimension Table Name |
Logical Dimension Table Name |
|---|---|---|---|---|
424 |
STG_INS_MORBIDITY_MASTER |
Stage Insurance Morbidity Master |
DIM_INS_MORBIDITY |
Insurance Morbidity Dimension |
425 |
STG_INS_MORTALITY_MASTER |
Stage Insurance Mortality Master |
DIM_INS_MORTALITY |
Insurance Mortality Dimension |
684 |
STG_INS_MORTALITY_MULT_MASTER |
Stage Insurance Mortality Multiplier Master |
DIM_INS_MORTALITY_MULTIPLIER |
Insurance Mortality Multiplier Dimension |
Insurance Mortality and Morbidity T2Ts and their description are given here.
T2T Name |
T2T Description |
|---|---|
T2T_FCT_INSURANCE_MORTALITY |
This T2T stores the sum charged every year by the Insurer to the policyholder to deliver the life cover. |
T2T_FCT_INSURANCE_MORBIDITY |
This T2T stores details of morbidity rates, which are actual age, survival probabilities, and so on, related to particular mortality tables. |
T2T_FCT_INS_MORTALITY_MULT_DTLS |
This T2T stores the mortality multipliers. Multipliers are generally calculated to reflect a more accurate estimation of mortality depending on growth in population and given rate of return. |
The mapping details for the Insurance Mortality and Morbidity T2Ts are given here.
Source Table Name |
Logical Stage Table Name |
Fact Table Name |
Logical Fact Table Name |
T2T Name |
|---|---|---|---|---|
STG_INSURANCE_MORTALITY |
Stage Insurance Mortality |
FCT_INSURANCE_MORTALITY |
Fact Insurance Mortality |
T2T_FCT_INSURANCE_MORTALITY |
STG_INSURANCE_MORBIDITY |
Stage Insurance Morbidity |
FCT_INSURANCE_MORBIDITY |
Fact Insurance Morbidity |
T2T_FCT_INSURANCE_MORBIDITY |
STG_INS_MORTALITY_MULT_DTLS |
Stage Insurance Mortality Multiplier Details |
FCT_INS_MORTALITY_MULT_DTLS |
Fact Insurance Mortality Multiplier Details |
T2T_FCT_INS_MORTALITY_MULT_DTLS |
All RDBMS related Result tables can also be deployed on Hive (Stage and Results). Deploy the Hive T2Ts using the Rules Run Framework. For more information, see the Rules Run Framework section in the Oracle Financial Services Advanced Analytical Applications Infrastructure User Guide Release 8.1.1.0.0.
NOTE:
In general, Stage and Result tables are also supported in Hive. However, there are some exceptions. For a list of tables that are not supported in Hive, see List of Unsupported T2Ts
Follow this SCD process to populate data into a Dimension table:
NOTE:
You can also follow this SCD process to populate data into any Hive-related Dimension table.
1. To populate data into a Dimension table, execute the SCD batch. For a detailed procedure, see the Slowly Changing Dimension (SCD) Process.
2. To check the SCD batch execution status of a Dimension table, follow the procedure Check the Execution Status of the SCD Batch.
3. To verify log files, and check the error messages (if any), follow the procedure Verify Log Files and Check Error Messages.
Follow this T2T process to populate data into any T2T Result table:
NOTE:
Only RDBMS T2Ts can be executed using the PMF.
1. To populate data into any T2T Result table, execute the PMF process for that T2T. For a detailed procedure, see the following sections:
a. Prerequisites for loading T2T.
b. Select the Run Parameters and Execute the Run.
2. To check the T2T execution status and verify the log files of any Result table, follow the procedure in the Verify the Run Execution section.
3. To check the error messages, if any, follow the procedure in the Check Error Messages section.
You can see the following topics related to other function-specific tables: