For life insurers, validating balance sheet provisions during calculation engine testing is a critical part of system migrations. Reference calculators play a central role in this process, facilitating policy transfers from legacy to target systems, supporting controlling and production testing, and verifying calculated values. This report summarizes the key requirements for life insurance reference calculators and evaluates the extent to which they can be met using Milliman Mind, a cloud-based modelling platform. It discusses a basic policy status, scheduled (annual) updates, and unscheduled post-sale transactions for an endowment insurance product.

Key sections of the report include:

• Challenges for life insurers: Testing of calculation functions framework and modelling reference calculators
• Solution approaches with Milliman Mind: Product description and structure
• Technical and mathematical specifications: Data, bases of calculation, and formulas
• Proof of concept: Potential expansions, using Excel and Milliman Mind, test runs, and comparison with other solutions