Using the Public Access DFA Model: A Case Study

This paper describes the application of a publicly available property-liability insurance DFA model to an actual insurance company. The structure and key parameters of the model, as well as how to run the model, are explained in detail. A copy of the report to management of the company is included. The initial company reaction to this model was favorable. Management intends to use the model for such purposes as long term planning, capital allocation, reinsurance negotiations, competitor analysis and external communications with the regulatory and investment communities.