Morocco – Technical reserve rules for reinsurers
Thursday, 01 19 2017, Category: Insurance and Reinsurance, Country: Morocco
The insurance supervisory authority (DAPS) has published new regulations for the calculation of the technical provisions for Moroccan reinsurers. The Société Centrale de Réassurance and Mamda Re will now have to rely on the rating of retrocessionnaires in order to calculate the amount of technical reserves.
If retrocessionnaires’ rating is equal or above A-, then 100% of the net claims shall be accepted in representation of the technical reserves. In case the rating is comprised between A and BBB-, this rate shall dwindle down to 70%. The debts from reinsurers not having ratings for more than 18 months or having ratings below BBB- shall not be accepted in representation of the said reserves. Standard & Poor’s rating shall be the benchmark.
Source: Atlas Magazine