Regulatory Alerts2023-12-14
AMF Notice on Capital Adequacy Requirements Guideline for Reciprocal Unions 2023
The Autorité des marchés financiers (AMF) issued this notice to clarify and adjust the Minimum Capital Test calculations for reciprocal unions under their 2023 capital adequacy guideline. It specifies precise cash flow treatments for unexpired coverage under both the General Measurement Model and Premium Allocation Approach, ensuring strict alignment with IFRS 17. The clarified formulas explicitly incorporate reinsurance commissions, expected premiums payable, and time value adjustments to standardize capital requirements across the sector.
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