Application Of Dynamic Financial Analysis In Non-life Insurance Companies

Dynamic Financial Analysis(DFA)is a systematic approach based on large-scale computer simulations for the integrated financial modeling of non-life insurance and reinsurance companies aimed at assessing the risks and benefits associated with strategic decisions.DFA is a new approach to modeling insurance companies that developed in the 1990s as a result of the convergence of several trends. One trend was the increase in financial risk that had begun in the 1970s as first inflation and then interest rates became increasingly volatile. Another trend was the increased access to computers powerful enough to accommodate the sophisticated mathematical techniques involved in DFA. A third trend was the adoption of similar types of analyses in banks and other financial institutions.The general approach of DFA was applied first by insurers in Europe, then in Canada and the United States. As future development trend of Asset-Liabilities-Managemen(tALM)Technology of insurance company, DFA can not only be competent for comprehensive and holistic forecasting task of insurance company's operation and financial status, but also can help national insurance industry build the most preliminary, and probably the most effective financial risk forewarning system, by dynamically scrutinizing assets and liabilities conditions changes of insurance company. All study tasks in these research fields are imbued with challenges and enthusiasm, however they are still a virgin soil in our country, which give me the very impulsion to explore the mystery.The purpose of this paper is to provide an overview of DFA and its usage in a non-life insurance context. There are five parts, the main framework is as the following:The first part is Introduction, which sets forth the background of the research and its study meaning, explains the restricts in my research,...