Regulatory Alerts2023-12-18
Notice on the Application of the Capital Adequacy Requirements Guideline for Property and Casualty Insurance 2023
The Autorité des marchés financiers (AMF) issued this notice to clarify capital adequacy calculations for property and casualty insurers applying the 2023 Guideline. It mandates specific methods for computing unexpired coverage across insurance and reinsurance contracts, addresses captive fronting arrangements, and standardizes the treatment of unamortized acquisition cash flows and reinsurance commissions. These adjustments resolve interpretive ambiguities to ensure Minimum Capital Test results align consistently with IFRS 17 accounting standards.
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