Regulatory Alerts2017-03-17
Insurance Undertakings Investment Regulation (VU-KAV)
The Austrian Financial Market Authority establishes comprehensive investment quality standards for domestic insurance and reinsurance undertakings, mandating robust asset-liability management frameworks and documented internal investment policies. The regulation enforces organizational separation of valuation from asset selection, implements quantitative limit systems with mandatory look-through approaches for fund investments, and requires continuous credit risk assessments alongside strict liquidity and derivative usage rules. These requirements ensure portfolio security and profitability while safeguarding policyholder interests through standardized risk monitoring and specialized coverage fund provisions.
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