Study on Framework and Structure Model of Dynamic Financial Analysis

In the past years, DFA has become an important tool for the analysis of an insurance company's financial situation. In particular, it is a valuable instrument for solvency control, which is now becoming important as regulators encourage insurance companies to determine risk-based capital using internal risk management models. This article mainly considers three aspects: First, paper discusses fundamental conception, framework and Factor of DFA. Second, structure of DFA model which includes three parts is proposed. Third of this paper is assessment and outlook of DFA, it shows that DFA models will have to become simpler and effective in the future.