Here’s a rundown on the changes of keenest interest to insurance advisors...
A.M. Best Co. is requesting comments from market participants in the insurance industry and other interested parties on the draft criteria report, "Understanding BCAR for Life/Health Insurers" (updates version dated May 2, 2012).
Proposed edits to the draft criteria report include the potential for higher asset risk charges for foreign investments, the addition of "limited benefit" and "student" lines of business to the morbidity risk component and the inclusion of the unfunded portion of pension plans and other post-employment benefit plans as additional off balance sheet items in the business risk component.
These updates are part of A.M. Best's continual review of its rating methodology and are not considered material or expected to affect the vast majority of ratings.
Visit www.ambest.com/ratings/methodology to download a PDF copy of each report.
Written comments should be submitted by email to firstname.lastname@example.org no later than March 22.
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.
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