An insurance simulation model

ABSTRACT

This paper describes an interactive insurance simulation model comprising all major aspects of a financial report for an insurance company. The model was developed by Topdanmark A/S for it's own use, and has been in use since it was completed in 1985. Based on actual data, some of which are collected from other APL systems, the model is used for summing up the detail budgets. Hereby a forecast financial report can be produced, and sensitivity to the assumptions behind the budgets and the composition of the budgets can be tested. The paper gives a brief introduction on how the model was conceived, and an explanation of why APL was chosen for the task. This is followed by a presentation of the model itself, with a detailed description of the extent and complexity of the model. As an example of model usage, an impact is introduced into the model, and the effect hereof is demonstrated. Finally some future ambitions regarding model development are sketched.

INDEX TERMS

Primary Classification:
  J. Computer Applications
  J.1 ADMINISTRATIVE DATA PROCESSING
      Subjects: Financial (e.g., EFTS)

Additional Classification:
  D. Software
  D.3 PROGRAMMING LANGUAGES
      D.3.2 Language Classifications

          Nouns: APL

  I. Computing Methodologies
  I.6 SIMULATION AND MODELING

General Terms:
Design, Languages