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Dynamic financial analysis (DFA) is a simulation approach that looks at an insurance enterprise's risks holistically as opposed to traditional actuarial analysis, which analyzes risks individually. Specifically, DFA reveals the dependencies of hazards and their impacts on the insurance company's financial well being such as business mix, reinsurance, asset allocation, profitability, solvency, and compliance. In addition to projecting stochastic future economic scenarios through using scenario generators such as interest rate, underwriting cycle and jurisdictional risk models, DFA also links the scenarios with the financial models of the targeted insurance company that is being analyzed. Such models not only reveal the operation and the business structure of the company, but also uncover the dependencies among its business practices. Because DFA tries to account for every aspect of the company, it produces a vast amount of data. As a result, analyzing and presenting the outputs effectively is of great importance. ==Objectives== DFA is used primarily by financial practitioners to manage profitability and financial stability (the risk control function of DFA)〔Kaufmann, Roger. Andeas Gadmer. Ralf Klett. (2004, May) (''Introduction to Dynamic Financial Analysis'' ). Retrieved October 23, 2009, from Casualty Actuarial Society website: http://www.casact.org/library/astin/vol31no1〕 Not only do DFA users seek to maximize shareholder values, but they also try to maintain customer values. Furthermore, outputs from DFA could help managers identify strengths and weaknesses of the following areas.〔Blum, Peter. Michel Dacorogna. (2004) (''Dynamic Financial Analysis'' ), Retrieved October 23, 2009, from Converium Ltd website: http://www.scor.fr/www//index.php?id=350&L=2〕 * Business mix: estimates relative and absolute value of each line of business (e.g. premium and commission level) compared to the company's financial. * Reinsurance: uncovers the structure of the company's line of businesses such as contract types, interrelation among contracts, and cost of reinsurance. * Asset allocation: determines whether a company is taking on too much investment risk, which could be minimized through diversification of investments. * Profitability: measures the profitability of the company's each line of business. * Solvency: reveals liquidity problems, which are mismatches of cash flows that a company might experience if it did not have enough cash to immediately meet financial obligations. * Compliance: assesses the likelihood of insurance regulators intervening the company's business due to change in regulations or deteriorating business operations. * Sensitivity: explores the company's reaction to a change in strategies and economic conditions in the future. * Dependency: uncovers dependencies of all kinds of risks that are hard to understand without a holistic modeling and analysis tool. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「dynamic financial analysis」の詳細全文を読む スポンサード リンク
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