A.M. BestTV: A.M. Best Panel Updates Capital Model Developments

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October 23, 2015 11:19 AM EDT

OLDWICK, N.J.--(BUSINESS WIRE)-- This A.M. BestTV episode highlights a recent webinar where two senior members of A.M. Best's rating division provided updates on changes to the agency's capital model, known as Best's Capital Adequacy Ratio (BCAR). Click on http://www.ambest.com/v.asp?v=bcar1015 to view the entire program.

With the revisions being made to BCAR, Group Vice President Ed Easop and Vice President Thomas Mount discussed how the model would be applied throughout the rating process.

Some fundamental factors, the analysts said, are: (1) A.M. Best does not believe capitalization is currently an industrywide issue driving rating decisions; (2) A.M. Best does not expect the BCAR updates to result in sweeping changes in ratings; and (3) The goal is to deploy more advanced techniques to better understand and evaluate the risks facing insurers.

“A.M. Best is aware that there is a good deal of anxiety in the industry and marketplace regarding the updates to the BCAR model, which in large part reflects the role of the BCAR model in A.M. Best’s rating evaluation—both real and the perceived roles,” said Easop.

Mount explored differences between how the new BCAR score would be calculated versus the old BCAR score, how the new BCAR would impact stress testing and other facets of the new model, such as reinsurance dependence.

To view the webinar in its entirety, please visit http://www.ambest.com/webinars/capmodel1015.

Recent episodes of A.M.BestTV include:

  • Insurers Scramble to Stay Ahead of Technology, Risk and Consolidation: Independent brokers and insurers attending the Brokerslink Conference in New York City said the biggest threats to their businesses include the risk of disintermediation, becoming too narrowly focused and failing to anticipate the expanding spectrum of risks: http://www.ambest.com/v.asp?v=brokers1015.
  • Insurers Rediscover the Appeal of Small Business Coverage: Developments in technology, analytics and modeling have increased insurers’ comfort with and ability to underwrite small businesses. However, winning these accounts means increasing risk management and loss control resources: http://www.ambest.com/v.asp?v=smallbusiness1015.
  • Drones Present Coverage Opportunities, Legal Hurdles: Insurance and legal experts explore regulatory concerns and risk exposures raised by the rapid adoption of drones for professional and recreational usage: http://www.ambest.com/v.asp?v=dronestwo1015.
  • Defense Research Institute Conference: Attorneys Detail Shifts in Insurance Legal Landscape: Attorneys at the Defense Research Institute conference, in Washington, D.C., said insurers are trying fewer cases, retaining fewer firms, facing new forms of liability and threats to attorney-client privilege: http://www.ambest.com/v.asp?v=dri1015.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

A.M. Best
Lee McDonald, 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
[email protected]

Source: A.M. Best


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