Risk Classes and Rules Tables (February, 2007)
With the release of AXIS 12 in February 2007, the beta has been removed from the functionality in AXIS supporting Risk Classes and Rules Tables, allowing these powerful new objects to be used by anyone, without special feature code authorization.
Risk Class Objects and Rules Tables were first introduced in AXIS 11.4 under a beta feature code to permit testing and further development. With the release of AXIS 12 in February 2007, the beta has been removed from these powerful new objects, allowing them to be used by anyone, without special feature code authorization.
The Risk Class is a collection of identifiers of a policy and the lives insured by it which usually relates to the underwriting or rate calculation categories of those lives insured. It was expected that the usual applications would include such characteristics as sex, smoker category, preferred underwriting classes, and volume bands. However because Risk Classes and their attributes are totally defined by the user, many creative applications are possible.
Rules Tables are special types of Formula Tables, which allow the user to quickly link either Risk Classes or their component attributes (e.g. Sex = male, or Smoker class = nonsmoker) to the appropriate AXIS Tables containing rates and values defined in a more traditional form. The Table selection and linkage is controlled by the AXIS Script formula using special predefined functions.
Once a Rules Table is set up to define the appropriate mortality rate for a family of Risk Classes applicable to a given Product Series, then that same Rules Table can be reused in all the Cells set up to price that product. When the Risk Classes are defined within seriatim data, then all seriatim records for a single plan can be sent to a single Cell using Rules Tables, provided Rules Tables are supported for all the assumptions that vary by Risk Class attributes.
Since the introduction of Risk Classes and Rules Tables, GGY has received numerous requests to support Rules Tables in various specific assumptions, and more will be added in future as necessary.
Refer to the Related Article below for a more complete explanation of how Risk Classes and Rules Tables are used.