CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 26, 2024 08:46 AM (EST)
AM Best is requesting comments from market participants in the insurance industry and other interested parties on the application of Best’s Credit Rating Methodology (BCRM) and related criteria procedures to IFRS 17-reporting companies, further continuing its engagement with stakeholders. The related criteria procedures are “Available Capital and Insurance Holding Company Analysis,” “Understanding Global BCAR,” “Understanding BCAR for Canadian Property/Casualty Insurers” and “Understanding BCAR for US and Canadian Life/Health Insurers.”
BCRM, associated criteria procedures and the Best’s Capital Adequacy Ratio (BCAR) model focus on the underlying economics of (re)insurers and are not specific to an accounting standard. Similarly, key rating assumptions, variables and drivers in BCRM and its criteria procedures are also agnostic to accounting standards. In this way, global consistency and comparability is achieved across AM Best’s credit ratings. Therefore, AM Best is not proposing material changes to BCRM and the associated criteria procedures as a result of IFRS 17.
AM Best does not expect that the application of BCRM and its criteria procedures will result in changes to published ratings as a direct consequence of (re)insurers transitioning to IFRS 17 reporting. However, in the interest of continued market transparency, AM Best is publicly requesting comments from interested parties on this important industry topic.
Please consider recently published AM Best commentary on the development of IFRS 17 and its anticipated use of financial reporting under this accounting standard in the rating process for (re)insurers. Published reports and commentaries include:
BCRM and the relevant criteria procedures are available in the methodology section of AM Best’s website. Comments are requested by no later than March 27, 2024.
When submitting comments to the methodology in-box, commenters can select one of the following three options: Allow my comments to be made public and include my contact information; allow my comments to be made public but keep my contact information anonymous; or do not publish my comments (confidential). Written comments should be submitted no later than March 27, 2024, by e-mail to one of the following email addresses based on your selection:
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.