Regulatory Alerts2017-04-10
Own Funds Requirements Regulation for Small Mutual Associations
The Austrian Financial Market Authority issued this regulation to mandate the calculation of own funds requirements for small mutual associations under the 2016 Insurance Supervision Act. The rules require entities to compute two specific indices based on retained earned premiums and retained sum insured, applying defined factors and tiers depending on the association's insurance portfolio. The final own funds requirement is determined by the higher of these two calculated indices, with the regulation entering into force on 1 January 2016.
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