The Public Access DFA model is a spreadsheet based stochasticsimulation model which simulates and property casualty insurance companiesfinancial conditions over a five year time horizon. The model generatesfinancial statements including balance sheets, income statements and IRISratios. The model can also capture and display expected values anddistributions of any variable included in the model.
The current components being evaluated and documented include:
1.
Interest rate and inflationgenerator
2.
Investment module
3.
Financial statement development
4.
Loss development and paymentpatterns
5.
New business
6.
Jurisdictional risk
7.
Catastrophe module
8.
Underwriting cycle
9.
Taxation
10.
Output
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