A.M. Best: BCAR revisions to impact ILS
Tuesday, 04 26 2016, Category: Insurance and Reinsurance, Country: World
Proposed revisions of A.M. Best’s Capital Adequacy Ratio (BCAR) has the potential to positively and negatively impact demand for reinsurance and insurance-linked securities (ILS) capacity, according to Willis Capital Markets & Advisory (WCMA).
Ratings agency A.M. Best’s BCAR is used to assess the strength of an insurance or reinsurance balance sheet, which the firm uses to assign ratings to re/insurance companies.
Following an announcement from A.M. Best that during the first-quarter of 2017 it hopes to implement changes to its BCAR methodology; WCMA has discussed the potential fallout from certain changes to BCAR for players in the reinsurance and ILS space.