Regulatory Alerts2017-04-10
Own Funds Requirements Regulation for Small Mutual Associations
The Austrian Financial Market Authority issued this regulation to define how small mutual associations calculate their own funds requirements under the 2016 Insurance Supervision Act. The rules mandate that these entities determine their capital needs by calculating two specific indices based on retained earned premiums and retained sum insured, then applying the higher of the two results. Detailed tiered calculation factors are provided for different insurance sectors and volume thresholds to ensure adequate contingency reserves.
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