Dynamic Financial Models of Property-Casualty Insurers

The purpose of this paper is to discuss and provide guidance on the important issues and considerations that confront actuaries when designing, building or selecting dynamic financial models of property-casualty risks. The Casualty Actuarial Society's Dynamic Financial Analysis Committee has prepared it as a part of the Society's ongoing educational efforts on issues affecting actuaries responsible for the strategic and dynamic financial analysis of insurers. 2 This paper should not be interpreted as placing requirements on actuaries or the models used by actuaries. Such requirements have been and will continue to be addressed by the Actuarial Standards Board.