Rule · SHCP · 31 Mar 2016 · DOF 5431509
This circular amends Annex 6.6.4-d of the Single Insurance and Surety Circular to update the 99.5% percentile values of paid claim indices and proportionality factors for surety operations. The updated values apply to specific surety branches, including fidelity, judicial, administrative, and credit sureties, for the calculation of the Solvency Capital Requirement. These modifications enter into force the day following their publication in the Official Gazette of the Federation.
DOF: 31/03/2016
Amending Circular 6/16 of the Single Insurance and Surety Circular
At the margin, a seal with the National Coat of Arms, which says: United Mexican States.- Ministry of Finance and Public Credit.- National Commission of Insurance and Sureties.
AMENDING CIRCULAR 6/16 OF THE SINGLE INSURANCE AND SURETY CIRCULAR
(Annex 6.6.4-d)
The National Commission of Insurance and Sureties, based on the provisions of articles 366, fraction II, and 372, fraction VI, of the Law of Insurance and Surety Institutions, and
CONSIDERING
That in accordance with the provisions of article 233 of the Law of Insurance and Surety Institutions, Institutions must calculate monthly the solvency capital requirement in accordance with the general formula referred to in article 236 of said Law, or by using an internal model, in terms of what is established in article 237 of the same legislation.
That according to Provision 6.6.4, fraction II, subsection b), numeral 2, of the Single Insurance and Surety Circular, in the case of retrocession operations taken from insurance or surety entities abroad, or non-proportional retrocession operations, the 99.5% percentile value of the paid claim index that must be used for the requirement for expected future claims and recovery of guarantees for taken retrocession operations, will be that of the market, which is indicated in Annex 6.6.4-d of the aforementioned Single Circular.
That in view of the above, it is necessary to update the 99.5% percentile value of the paid claim index that must be used for the requirement for claims in Annex 6.6.4-d of the Single Insurance and Surety Circular.
For the aforementioned reasons, the National Commission of Insurance and Sureties has resolved to modify the Single Insurance and Surety Circular in the following terms:
AMENDING CIRCULAR 6/16 OF THE SINGLE INSURANCE AND SURETY CIRCULAR
(ANNEX 6.6.4-d)
SINGLE.-
Annex 6.6.4-d of the Single Insurance and Surety Circular is modified.
TRANSITORY
SINGLE.-
This Amending Circular shall enter into force the day following its publication in the Official Gazette of the Federation.
This is made known to you, based on the provisions of articles 366, fraction II, and 372, fraction VI, of the Law of Insurance and Surety Institutions.
Respectfully,
Effective Suffrage. No Re-election.
Mexico City, March 22, 2016. - The President of the National Commission of Insurance and Sureties, Norma Alicia Rosas Rodríguez. - Rubric.
ANNEX 6.6.4-d.
MARKET PERCENTILE VALUES OF PAID CLAIM INDICES, FOR RETROCESSION OPERATIONS TAKEN
For the purposes of calculating the SCR, in the case of taken retrocession operations, the following values must be used, in accordance with what is indicated in Provision 6.6.4 of the CUSF.
I.
99.5% percentile value of the paid claim index:
Branch or type of surety
Index
First risk fidelity.
100.00%
Other fidelity
7.50%
Judicial covering drivers of motor vehicles
2.21%
Other judicial
5.02%
Administrative
0.93%
Credit
2.99%
II.
Proportionality factors between underwritten secured amounts and premiums
Branch or type of surety
Factor
First risk fidelity.
1.00
Other fidelity
16.34
Judicial covering drivers of motor vehicles
41.80
Other judicial
35.05
Administrative
80.13
Credit
41.80
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“Amending Circular 6/16 of the Single Insurance and Surety Circular (Annex 6.6.4-d)”
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