Regulatory Alerts2023-12-14
AMF Notice on Capital Adequacy Requirements for Property and Casualty Insurance 2023
The Autorité des marchés financiers (AMF) issued this notice to clarify and adjust the calculation of unexpired coverage for reinsurance contracts held under its 2023 Capital Adequacy Requirements Guideline. Insurers must apply specified cash flow treatments and reinsurance commission adjustments when using either the general measurement model or premium allocation approach to ensure Minimum Capital Test compliance aligned with IFRS 17. These clarifications, effective January 1, 2023, standardize capital calculations and resolve interpretive difficulties regarding proportional reinsurance contracts.
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