OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. is requesting comments from market participants in
the insurance industry and other interested parties on the following
draft criteria report:
The criteria describes A.M. Best’s approach to evaluating the Tail Risk
associated with sidecars. Tail Risk is the chance that the risk of loss
thought to be ceded to a sidecar must actually be borne by the sponsor
due to inadequate capitalization of the sidecar. Edits to the criteria
include the addition of an exhibit that demonstrates how the tail risk
is incorporated into the sponsor insurer’s BCAR calculation. This
example was formerly contained within the criteria, “Tail Risk and the
BCAR,” which has now been combined into the criteria “Assessing the Tail
Risk of Sidecars,” to eliminate redundancy.
These updates are part of A.M. Best’s continual review of its rating
methodology and are not considered material or expected to affect
to download a PDF copy of each report.
Written comments should be submitted by email to email@example.com
no later than August 23, 2012.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS
A.M. Best Co.Duncan McColl, CFA, 908-439-2200, ext. 5826Manager,
Easop, 908-439-2200, ext. 5781Group Vice Presidentedward.firstname.lastname@example.orgRachelle
Morrow, 908-439-2200, ext. 5445Senior Manager, Public Relationsrachelle.email@example.comJim
Peavy, 908-439-2200, ext. 5644Assistant Vice President, Public
Source: A.M. Best Co.