Regulatory Alerts2012-10-01
FMA Circular 04/2012 on Unisex Calculation Bases
The Financial Market Authority (FMA) issued this circular to guide Austrian insurance undertakings on implementing unisex calculation bases for life and health insurance following the EU Court’s 2011 Test-Achats ruling. It mandates that insurers justify their use of unisex mortality tables, such as the AVÖ 2005R unisex pension table, by providing comparative analyses of expected versus actual mortality and safety premiums within their actuarial bases. Furthermore, the FMA recommends deriving both cautious 1st order and realistic 2nd order unisex calculation bases to ensure adequate technical provisions and facilitate ongoing validation against actual claims experience.
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