|[February 14, 2013]
A.M. Best Requests Comments on Draft Criteria: Universal BCAR, BCAR for P/C Insurers and BCAR for Canadian P/C Insurers
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 reports:
-- "Understanding Universal BCAR" (updates version dated August 23, 2012)
"Understanding BCAR for Property/Casualty Insurers" (updates version
dated May 2, 2012)
-- "Understanding BCAR for Canadian
Property/Casualty Insurers" (updates version dated August 23, 2012)
Proposed edits to the draft criteria report, "Understanding Universal
BCAR," include asset risk charges that can vary by country, a change in
the discount rate assumption used to present value non-life loss and
loss-adjustment expense reserves from 5% to 4% and a description of
typical items that are included in off balance sheet risk.
The draft criteria report, "Understanding BCAR for Property/Casualty
Insurers," includes changes to reflect the annual update to growth
charges and the inclusionof pension plans and other post-employment
benefit plans as additional off balance sheet items in the business risk
component. In addition, the discount rate used to present value loss and
loss adjustment reserves was changed from 5% to 4%, and the treatment of
foreign investments was included.
The draft criteria report, "Understanding BCAR for Canadian
Property/Casualty Insurers," includes the potential for higher asset
risk charges for foreign investments, a change in the discount rate
assumption used to present value loss and loss adjustment expense
reserves from 5% to 4% and a description of typical items that are
included in off balance sheet risk.
These updates are part of A.M. Best's continual review of its rating
methodology and are not expected to affect the vast majority of A.M.
to download a PDF copy of each report.
Written comments should be submitted by email to firstname.lastname@example.org
no later than March 14, 2013.
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 © 2013 by A.M. Best Company, Inc. ALL RIGHTS
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