Setting EBS Parameters

The Parameters in this Tab affect Calendar Year Projections based on the Earnings by Source (EBS) functionality.  EBS features may only be used when specifically licensed for each liability module of AXIS.

The parameter settings available in this Tab are as follows:

Reserve Release Timing & EBS Report Period

The reserve release timing list box determines the calendar date at which the reserve released on death, lapse or other decrement is calculated.  The primary purpose of this setting is to define the length of the EBS reporting period.  The formulas used to allocate the change in reserve over a period by component require an assumption that reserves are released at the end of that period.  Accordingly, viewing EBS Lines in the calendar year projections over a period shorter than the EBS reporting period defined by this parameter will not produce meaningful results.  Refer to Choosing an EBS Reporting Period for more info on the impact of this option.

Use EBS checkbox (subject to EBS licensing)

When toggled on, EBS processing is enabled, which results in the processing of all of the EBS calculated lines in the Calendar Year Projections according to the cell assumptions and the actual transaction seriatim data attached to the cell.  Only cells in modules for which EBS features are available and licensed are affected by this checkbox.  Note that if actual transaction data is attached to the seriatim record file, subject to the other parameters on this tab, Pricing decrement assumptions or (for the UL and Annuity Modules) selected Product feature assumptions impacting on the Fund accumulation may be ignored during the EBS analysis period of the projections. 

Cutoff Month and Year

The Cutoff Month and Year may be used to determine the point up to which actual seriatim new business and termination transactions as defined in DataLink and associated with the Seriatim Record file are reflected in the Calendar Year Projections.   Note that this date may result in some actual transaction records or some columns of the Volumes Table being ignored, depending on the choices for the following parameters.  This date may not be later than the Status Date for the Policy Movement Table as defined in DataLink.

Actual Transaction Processing

This Parameter determines if all Transactions in the Policy Movement Table as defined in DataLink are used in EBS calculations.  The options are:

Process all actual transactions - With this option, all new business records and all new business and decrement transactions associated with the Seriatim Record file are considered, and for termination transactions, the Cutoff Month and Year defined above are thus ignored.  The Parameter below will determine if the Cutoff Month and Year are ignored for New Business.   With this option, the Status Date associated with the Policy Movement Table will determine when actual termination experience is assumed to be no longer available and Pricing experience assumptions used to determine ongoing decrements.

Process actual transactions reported on or before the cutoff date - This option restricts the processing of all new business and decrement transactions to those reported before the Cutoff Month and Year selected on this Tab.  The Parameter below for New Business will have no effect as this selection overrides it.  If projections extend beyond the Cutoff date, Pricing assumptions will determine the decrements projected beyond that date.

Seriatim New Business Processing

Seriatim New Business may be defined in the seriatim Record File in addition to, or in place of, using a Volumes Table to define new business.  This Parameter affects the application of the Cutoff Date to the New Business records within the seriatim Policy Movement transaction file.

Process all seriatim records - This is the default option, which results in processing of all seriatim new business records, unless the preceding Actual Transaction Processing parameter is set to "Process actual transactions reported on or before the cutoff date", in which case policies reported to be issued after the cutoff date would be ignored.

Process seriatim new business records reported on or before the cutoff date - With this option, seriatim new business records included in the Policy Movement Table, but reported after the Cutoff Date defined on this Tab, will be ignored.  If no reporting date has been defined for new business, new business is assumed to be reported on its date of issue and is included or excluded accordingly.

Volumes Table Processing

New Business may be defined using either or both of Volumes Table or seriatim new business records.  The Cutoff Date may be used to define which seriatim new business records are processed according to the preceding parameters.  This parameter enables a consistent transition from using Seriatim new business to using the Volumes Table data.

Process all issue dates - All columns of the Volumes Table are included in the cell processing, provided the Volumes Table is used at all, regardless of whether seriatim new business may also be defined for that issue year.

Process issue dates after the cutoff date - If Volumes Table processing has been selected for the cell recalculation, then this option will result in the processing of volumes defined in the Volumes Table only for issue months and years after the Cutoff Month and Year defined on this Tab.

 

In addition to setting the parameters in this Tab, you may also wish to review the Period and Dates tab to confirm the setting of the Valuation Date and the lengths of the Calendar Year Projections and of the monthly projections within the Calendar Year Projections.