Regulatory Alerts2003-12-05
FMA Circular on Balance Sheet Issues for the Insurance Pool for Terrorist Risks
The Austrian Financial Market Authority (FMA) issued this circular to provide guidance on balance sheet treatment for the insurance pool covering terrorist risks under the Insurance Supervision Act. The document mandates that members establish specific provisions under 'Other technical provisions' and accumulate at least 10% of their share annually, while prohibiting parallel accumulation with volatility reserves. It further clarifies that only contracts explicitly identified as co-insurance to the policyholder may be treated as such in financial statements.
Share