This study uses one of the methods used in financial analysis if financial failure is predicted. This study aims at the possibility of using the Kida model in predicting the possibility of financial failure that may turn into a failure that threatens the insurance companies in Libya. The results shows that the financial percentages indicators in Kida model have the capability to predict the financial risks that the companies might face. The study has developed the mathematical and statistical models using information technology and modern trends in financial analysis.