Create a playable financial unit-economics simulation for a home appliance insurance/protection product called Farabimeh. The model should simulate the business month by month. One simulation step equals one month. Build the model in six sections: 1. CUSTOMER ACQUISITION Create an automatic Source called "Monthly Leads". Create an interactive parameter called "Monthly Leads" with an initial value of 100000. Create an interactive parameter called "Attach Rate" with an initial value of 5%. Calculate: New Policies = Monthly Leads × Attach Rate Send converted customers into a Pool called "Active Policies". Create a Drain called "Acquisition Failure" for customers who do not purchase. 2. ACTIVE POLICY PORTFOLIO The Active Policies Pool should accumulate new policies over time. Create an interactive parameter called "Monthly Churn Rate" with an initial value of 2%. Each month, remove Monthly Churn Rate × Active Policies from the Active Policies Pool and send them to a Drain called "Churned Policies". 3. REVENUE Create an interactive parameter called "Monthly Premium Per Policy" with an initial value of 100000. Create a Register called "Premium Revenue". Calculate: Premium Revenue = Active Policies × Monthly Premium Per Policy Create a Pool called "Cash Balance" to represent accumulated company cash. Add Premium Revenue to Cash Balance every month. 4. CLAIMS Create an interactive parameter called "Monthly Claim Frequency" with an initial value of 1.5%. Calculate: Monthly Claims = Active Policies × Monthly Claim Frequency Create a Pool called "Claims". Create an interactive parameter called "Average Claim Cost" with an initial value of 2000000. Calculate: Claim Cost = Monthly Claims × Average Claim Cost Remove Claim Cost from Cash Balance and send it to a Drain called "Claims Expense". 5. OTHER COSTS Create the following interactive parameters: CAC Per New Policy = 50000 Commission Rate = 15% Monthly Service Cost Per Active Policy = 10000 Fixed Monthly OPEX = 500000000 Create Registers for: CAC Cost = New Policies × CAC Per New Policy Commission Cost = Premium Revenue × Commission Rate Service Cost = Active Policies × Monthly Service Cost Per Active Policy Total Costs = Claim Cost + CAC Cost + Commission Cost + Service Cost + Fixed Monthly OPEX Create separate Drains for: CAC Expense Commission Expense Service Expense Fixed OPEX Remove these costs from Cash Balance every month. 6. PROFITABILITY DASHBOARD Create Registers called: Total Revenue Total Costs Monthly Profit Cumulative Profit Loss Ratio Profit Margin Contribution Margin Revenue Per Active Policy Cost Per Active Policy Use the following calculations: Total Revenue = Premium Revenue Monthly Profit = Total Revenue - Total Costs Cumulative Profit should accumulate Monthly Profit over time. Loss Ratio = Claim Cost / Premium Revenue Profit Margin = Monthly Profit / Total Revenue Contribution Margin = Premium Revenue - Claim Cost - CAC Cost - Commission Cost - Service Cost Create a Pool called "Cumulative Profit" and update it every month. Show the following values in charts: Active Policies New Policies Premium Revenue Claim Cost Total Costs Monthly Profit Cumulative Profit Loss Ratio Profit Margin Organize the diagram visually from left to right: Customer Acquisition → Active Portfolio → Revenue → Claims and Costs → Profitability. Make all major business assumptions interactive so I can change them during simulation. Allow decimal values where necessary. Use clear labels and keep the model modular so that later it can be duplicated for four product tiers: Firoozeh, Yaghoot, Zomorrod, and Almas.
