Overview of Dynamic Financial Analysis - Chapter 1

The purpose of this paper is to provide an overview of Dynamic Financial Analysis (DFA) and its usage in a property-casualty insurance context. It highlights the evolution of financial modeling from static financial planning to dynamic financial analysis, presents some potential uses for DFA models and provides a few cautions about the use of such models. This document is intended to serve two purposes: first, as a non-technical overview for interested parties and second, as an introduction to a comprehensive rewrite of the Dynamic Financial Analysis Handbook currently being done by the Casualty Actuarial Society Dynamic Financial Analysis Committee.