Regulatory Alerts2022-12-01
AMF Notice on Capital Adequacy Requirements for Reciprocal Unions 2023
The Autorité des marchés financiers (AMF) issued this notice to clarify how reciprocal unions calculate the Minimum Capital Test under their 2023 capital adequacy guidelines. The regulator specifies that only insurance contracts recognized under sections (a) or (b) of IFRS 17 paragraph 25 must be included in the unexpired coverage calculation, excluding onerous contracts recognized under section (c). These targeted adjustments to section 4.3.2 take effect on January 1, 2023, ensuring consistent capital requirement application across all IFRS 17-recognized contracts.
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