Best’s Special Report: AM Best Compares BCAR Model Output With Solvency II Capital Requirements
The report notes it is relatively early days in the application of Solvency II and AM Best’s updated BCAR model, with only two years of data available. Therefore, there has been only limited opportunity to observe trends. However, AM Best notes that by either metric virtually all AM Best-rated companies in the EU have excellent capital adequacy.
The report adds that risks contributing toward required capital in BCAR and Solvency II are broadly the same. However, calculations for required and available capital are different. At a basic level, both frameworks cover the core risks borne by (re)insurers: market, underwriting and credit risk. However, certain risks included in Solvency II, such as operational and currency risk, are not included in BCAR, but are included elsewhere in AM Best’s analysis.
To access the full copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=288335.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190804005031/en/
Director, Analytics
+44 20 7397 0320
[email protected]
Senior Director, Analytics
+44 20 7397 0281
[email protected]
Director, Research, Communications
& Media –
+44 20 7397 0322
[email protected]
Director, Market Development &
Communications
+44 20 7397 0280
[email protected]
Source: AM Best
Slightly Lower ACA Premiums Proposed In New Hampshire
New York City Officials Launch NYC Care Program Aimed At Uninsured
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News