Regulatory Alerts2020-10-07
Added · Updated
FMA Circular on Assumed Interest Rate in Health Insurance
The Financial Market Authority mandates that insurance undertakings calculate reserves for increasing age using a maximum assumed interest rate of 0.5% for new health insurance policies starting from July 1, 2021. The regulator prohibits premium adjustments intended to correct previously insufficient age reserves and requires insurers to adhere to the prudent person principle when determining actuarial rates. Insurers must diligently monitor capital market risks and ensure immediate reporting to management and the FMA if the permanent fulfillment of insurance obligations is endangered.
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