Abraham, Jon P.
During the sales process of an insurance product an illustration is used to show a customer the potential benefits and cash values of a policy. Our project was to determine what annual rate of return John Hancock should be using to illustrate their Indexed Universal Life policy at. To accomplish this we built a model for projected stock market returns using the Random Walk and Regime Switching models as a basis. We also layered on certain policy features to see how they affected the annual rate of return.
Worcester Polytechnic Institute
Major Qualifying Project
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