Regulatory Alerts2017-03-17
Added · Updated
2016 Volatility Reserve Regulation
The Financial Market Authority (FMA) issued this regulation to establish rules for insurance and reinsurance undertakings regarding the creation and release of a volatility reserve for non-life and accident insurance. It specifies conditions for establishing a reserve, including minimum average retained premiums, a standard deviation of claims ratios, and a historical claims/expense ratio exceeding 100%. The regulation details the calculation of required amounts, various allocation and withdrawal mechanisms, and defines relevant metrics like claims ratio, expense ratio, and observation periods for different insurance classes and business lines.
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