Dynamic Financial Models of Property/Casualty Insurers

The purpose of the report 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. It has been prepared by the Subcommittee on Dynamic Financial Models of the CAS Valuation and Financial Analysis Committee. It constitutes part of the Society’s ongoing educational efforts on issues affecting actuaries responsible for the strategic and dynamic financial analysis of insurers. In writing the report, the Subcommittee has intentionally avoided placing requirements on actuaries or the models used by actuaries. These requirements have been and will continue to be addressed by the Actuarial Standards Board.