Understanding OIPA Valuation Mechanisms

Before you start to configure a plan that will value policies it is important to understand how OIPA processes values.  The OIPA code will perform hard coded calculations depending on the type of funds being used for valuation.  OIPA will also perform certain predefined steps when valuation is run.  This is known as running the valuation engine.  

 

At a high level a transaction has valuation configuration that calls the valuation engine to run.  The OIPA system then holds in memory a complex structure of all deposits and removals from deposits by fund, which is the valuation structure.  The system then runs through basic calculations with this information, including the interest calculations.  At this point Surrender Charges, Redemption Fees, Free Amount or Market Value Adjustment calculations are executed if provided by the configuration.  

 

Note:  Refer to the V9 XML Configuration topic in this help system for information on using Valuation prefixes to access values within the valuation structure.  Select Common Elements | Available Prefixes.  

 

Assignment generates new valuation records to the valuation tables from selected math results.

  

Configuring Valuation

  1. Valuation can be configured and run at the transaction level.  You can view output in the OIPA Activity Detail screen.

  2. Valuation can also be configured at the policy level.  You can view output on the OIPA Values screen.

 

High Level Valuation Steps

High Level Valuation Steps

 

 High Level Work Flow Diagram

High Level Work Flow Diagram

Valuation Structure

When the system calls the valuation engine and retrieves a policy’s AsValuation records it creates a valuation structure to hold information from the AsValuation records.  The valuation structure includes the policy, fund, deposit and removal information for each record.

 

Valuation XML

The Valuation XML is made up of specific values that were calculated by valuation.  There is one business rule called PolicyValues, which is inserted in the XML.  The structure with its associated values are located in the XMLData column of the AsValuationXML table in the database.  

 

Example XML Valuation Structure taken from AsValuationXML