Faculty Advisor

Abraham, Jon P.

Abstract

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.

Publisher

Worcester Polytechnic Institute

Date Accepted

April 2012

Major

Actuarial Mathematics

Project Type

Major Qualifying Project

Accessibility

Unrestricted

Advisor Department

Mathematical Sciences

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