Regulatory Alerts2021-06-10 | DOF 5620788Added · Updated
Modifying Circular 7/21 of the Single Circular on Insurance and Surety Bonds
The National Commission of Insurance and Surety Bonds updates Annex 5.15.3 to establish specific paid claim and administrative expense indices for surety institutions lacking sufficient internal data, and updates Annex 7.2.5 to define statutory scenarios for the 2020 Dynamic Solvency Test. These changes require institutions to apply new market parameters for surety reserve valuations and utilize revised statutory assumptions regarding claim increases, financial product decreases, and counterparty insolvency when evaluating their solvency margins. The modifications entered into force the day following their publication in the Official Gazette on June 11, 2021.