Regulatory Alerts2025-04-11
Guidelines on Stress Test Requirement for Long Term Insurers
The Financial Services Commission of Mauritius has issued these guidelines to establish minimum capital standards for long term insurers and professional reinsurers. The stress test requirement mandates that insurers maintain assets in excess of liabilities at a level equal to the higher of their Termination and Ordinary Capital Adequacy Requirements, calculated through detailed formulaic assessments of lapse, surrender, mortality, investment, and operational risks. Non-compliance exposes licensees to regulatory directions, ensuring that sufficient capital buffers are held to absorb unexpected adverse shocks and meet future policy obligations.
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