The CAS has also sponsored several seminars on DFA, and papers on this topic are available in print or on the Web site. Many financial texts describe sophisticated interest-rate models that have been developed and used to price complex financial instruments. This model, which is run on Excel and Risk software, is available at no charge. Some of the stochastic processes included in this model are shown on Figure 6 . Benchmark values for the interrelationships among variables are included in the program, but these can be changed by users to reflect the specific characteristics of each insurer.
Input is derived from the insurer's financial statement.
The output includes the distribution of key financial variables. The Future of DFA DFA represents a new area of study for actuaries, an area requiring new tools and new expertise. The need for DFA developed as the financial world became a riskier place, beginning in the 1970s. Previously, actuaries could safely confine their attention to the liability side of the balance sheet and the underwriting side of operations. Work on DFA will cause actuaries to consider both the asset and liability sides of insurance operations, and both underwriting and investment income.