Introduction

Hi there, welcome to the Open-Source Economic Model wiki. Open-Source Economic Model (OSEM) is a modelling solution that allows financial companies to simulate their future financial performance. It is envisioned to be an alternative to classical internal models often found in insurance companies, pension funds, banks etc. The open design is especially suitable for medium size companies that do not have the resources for an end-to-end internal development team, but have the volume of assets that could benefit from tailored insights and scenario analysis made possible by such models.

OSEM takes into consideration the company's current assets and liabilities. It also allows the user to define any future investments and liability business. Through a simplified representation of the economy, it simulates decision-making such as trading and balance sheet rebalancing that a company would make as time progresses.

OSEM consists of different modules such as:

• Data preparation
• Investment universe definition
• Asset preparation and calibration
• Liability preparation and calibration
• Asset Liability preparation
• Asset Liability run
• Reporting

Note that in the prototype stage not all modules are implemented. Reach out to one of the contributors to find out what parts can be used with a higher degree of confidence and which parts are still very much in development.