Insight and Intelligence on the London & International Insurance Markets

25 February 2018

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BCAR and NAIC capital changes to create fresh US reinsurance demand

David Bull 10 January 2017

Capital model changes in the US could be a driver of incremental reinsurance demand, according to Aon Benfield.

In its reinsurance market outlook this month, the broker suggested changes to AM Best's capital adequacy ratio (BCAR) model are likely to translate to a "slight increase" in demand, and to a lower cost of reinsurance capital.

The latest draft of the criteria for the stochastic-based BCAR model added the 99.6 confidence level (CI) - equivalent to a 250-year return period -...

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This article was published as part of issue January 2017/2

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