Regulatory Alerts2017-03-17
2016 Volatility Reserve Regulation (SWRV 2016)
The Austrian Financial Market Authority issued this regulation to mandate non-life and reinsurance undertakings to establish volatility reserves for specific insurance classes and business lines. It defines the calculation methodologies for claims and expense ratios, sets observation periods, and establishes thresholds for reserve creation based on premium volume and volatility. The document further details the procedures for allocating, withdrawing, and releasing these reserves, including transitional provisions for existing reserves.
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