rewrite DST tests if the companys solvency can withstand future changes in its experience and in the economic environment Project the revenue account and balance sheet for enough years to identify fu

The DST is conducted to evaluate the company's ability to remain solvent in the face of potential changes in its experience and the economic environment. This involves projecting the revenue account and balance sheet over a sufficient number of years to gauge the impact of altering future assumptions on solvency. Assumptions may be varied individually or in combination to identify critical factors that could lead to insolvency, enabling proactive measures to prevent such an outcome. The DST can also assess the impact of different management strategies. A realistic model office is necessary, incorporating new business projections unless the company plans to halt such operations. The DST can be deterministic or stochastic, with dynamic links and management decision algorithms. Insolvency can be evaluated from either a supervisory or expected values perspective