What does Dynamic Financial Analysis mean? Read on to discover the definition & meaning of the term Dynamic Financial Analysis - to help you better understand the language used in insurance policies.
Dynamic Financial Analysis
The name for a class of structural simulation risk model of insurance company operations, focusing on underwriting and financial risks, designed to generate financial pro forma projections. Statistical modeling techniques that project an outcome not on a static basis that is, under one set of defined assumptions or the same assumption with one or two variables changed but to project a range of possible outcomes assuming constant movements in interrelated variables.
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