Using lifepack"

In lifepack: Insurance Reserve Calculations

Introduction

The lifepack package provides functions for actuarial calculations, including calculating reserves and equivalence premiums.

Example Usage

knitr::opts_chunk$set(echo = TRUE)
library(lifepack)

Here’s an example of how to calculate an equivalence premium:

```r

Lambda <- function(x) {

A <- matrix(0, 3, 3)

A[1, 2] <- (0.0004 + 10^(4.54 + 0.06(x+30)-10))ifelse(x <= 35, 1, 0) A[1,3] <- A[1,2] A[2,1] <- 2.0058 * exp(-0.117(x+30)) * ifelse(x <= 35,1,0) A[2,3] <- A[1,3](1+ifelse(x <= 35,1,0))

row_sums <- rowSums(A) diag(A) <- -row_sums

return(A) }

R <- function(x, mu) { if (x <= 35) { return(diag(c(-mu , 400000, 0))) } else { return(diag(c(400000, 400000,0))) } }

dR <- function(x, mu) { if (x <= 35) { return(diag(c(-1, 0,0))) } else { return(diag(c(0,0,0))) } }

rentefun <- function(x) { 0.01 + 0.001 * x } # Dynamic interest rate

prodint(Lambda, 0,80, 1000)

reserve(0, 80, Lambda, R, mu = 200000, r = 0.01, n = 1000)

sreserve(0,80, Lambda, R, mu=200000, r = rentefun, 1000) equiv_premium(0, 1, Lambda, R, dR, mu = 0.05, r = 0.03, n = 1000)

lifepack documentation built on April 4, 2025, 2:29 a.m.