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Definition of Model Point

Y

Yash A

Member
Hi All,

My understanding of Model Point is - a sample policy that represents a particular product group.

Can anyone please confirm if my understanding is correct? If not, what is the correct definition?

Thanks,
Yash
 
Yash A said:
Hi All,

My understanding of Model Point is - a sample policy that represents a particular product group.

Can anyone please confirm if my understanding is correct? If not, what is the correct definition?

Thanks,
Yash
Click to expand...
Hi Yash

Yes, this is what a model point is. I would go one stage further though and say that the model point will represent a particular group of policyholders as well as a particular product.

So we might have a model point for 25 year endowment assurances with a monthly premium of 100 sold to 30 year old female non-smokers. This model point might be used to represent all female non-smoker policyholders with premiums between 50 and 150 and aged between 25 and 35.

We'd then have other model points for other ages and premium sizes. There would be a similar set of model points for female smokers, and then a similar set for males.

Best wishes

Mark
 
Mark Willder said:
Hi Yash

Yes, this is what a model point is. I would go one stage further though and say that the model point will represent a particular group of policyholders as well as a particular product.

So we might have a model point for 25 year endowment assurances with a monthly premium of 100 sold to 30 year old female non-smokers. This model point might be used to represent all female non-smoker policyholders with premiums between 50 and 150 and aged between 25 and 35.

We'd then have other model points for other ages and premium sizes. There would be a similar set of model points for female smokers, and then a similar set for males.

Best wishes

Mark
Click to expand...
Got it. Thanks Mark!
 
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