What is the purpose of actuarial assumptions in AXIS modeling?
Actuarial assumptions convert a basic illustration into a realistic projection of cash flows by applying decrements, interest, and other actuarial factors.
What are some key actuarial assumptions used in AXIS?
Mortality (including improvement), Morbidity, Lapse, Interest Rates, Expenses, Inflation, and Benefit Utilization.
How are actuarial assumptions organized in AXIS?
They are arranged and stored in Assumption Sets, which contain all key parameters for projection or reserve calculations.
What are the main types of assumption sets in AXIS?
Pricing/Projection, Reserve with Margins, Reserve No Margins, Reserve Margins Only, and Purchase sets—depending on the module.
What is the difference between pricing and reserve assumption sets?
Reserve sets include additional margin-related functionality, while pricing sets focus on best estimate projections.
What must be selected for a cell to run in AXIS?
An Actuarial Assumption Set must be selected in the Pricing/Projection section, along with the Age Distribution Table.
What extra selection is required for the Universal Life module?
An Actuarial Assumption Set must also be selected in the Tax Reserves section.
Example: Why are actuarial assumptions critical for projections?
Without them, a model would only show level premiums and benefits, but with mortality and lapse rates applied, it projects realistic policy terminations and claim cash flows.
