Abstract:
For analyzing the financial effects of different strategies for insurance companies over a given time horizon, there are two primary techniques in use today: the first, so-called scenario testing, projects results under a few specific scenarios in the future. The other technique is stochastic simulation, better known as Dynamic Financial Analysis (DFA). Here many different scenarios are generated stochastically with the aim of giving information about the distribution of some important variables, like surplus or loss ratio. In this talk it will be explained how DFA works.
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