Prototype

Simulating commission token behaviour

Setup

Set basic parameters to generate contracts and randomized scenarios.

Yearly premiums = 200 - 800
Commission in annual premium = 100 %
Years of commission dilution = 3 years

Populated data

Premiums paid by customers

How much did the end-customer pay by the end of each year:

0 € = surrender or default
# year 0 1st year 2nd year 3rd year 4th year 5th year
1
2
3

Simulations of 3 tokens for 3 random cases.

Commission paid

How much money can a token holder withdraw each year:

# year 0 1st year 2nd year 3rd year 4th year 5th year
1
2
3

Commission payout is directly linked to clients payment and it stops in the case of policy surrender or default.

Maximal token value

What's the maximal value of the token for immediate sale:

# year 0 1st year 2nd year 3rd year 4th year 5th year
1
2
3

Undiscounted sum of all the future cash flows of the token. Real market price will be lower due to discounting, expected probabilities of surrenders/defaults and risk premium.