Proposed Changes to Insurer Risk-Based Capital Adequacy Criteria
S&P Global Ratings is requesting comments on its proposed methodology and assumptions for analyzing the risk-based capital (RBC) adequacy of insurers and reinsurers. We apply the output from these criteria in our insurance framework to assess capital and earnings--a key rating factor for insurers. These proposed criteria apply globally to all insurers in the life, property/casualty, health, mortgage, trade credit, and title insurance and reinsurance sectors. The proposed criteria also apply to assessing the asset-related risks of bond insurers.
* We provided more details on the proposed changes relative to the existing criteria, give an overview as to how we have addressed market feedback on our December 2021 RFC, and to address analytical questions
An illustrative model is being made available to assist users in their evaluation of the "Request For Comment: Insurer Risk-Based Capital Adequacy--Methodology And Assumptions", published May 9, 2023. The illustrative model has no application or use outside of helping market participants to understand and evaluate the RFC. Once the proposed criteria has been finalized following the conclusion of the RFC process, we intend to release an external model just as we have done for the existing risk-based capital criteria. While we expect the external model to be very similar to the illustrative model in terms of look and usability, the external model will reflect the finalized criteria.
We encourage interested market participants to submit their written comments on the proposed criteria by July 14, 2023, to this link, where participants must choose from the list of available Requests for Comment links to launch the upload process (you may need to log in or register first).
We will review and take such comments into consideration before publishing our criteria once the comment period is over. Upon publication of the finalized criteria, S&P Global Ratings will post comments received during the RFC process to this website.
Comments may also be sent to CriteriaComments@spglobal.com should participants encounter technical difficulties. All comments must be published, but those providing comments may choose to have their remarks published anonymously or they may identify themselves. Generally, we publish comments in their entirety, except when the full text, in our view, would be unsuitable for reasons of tone or substance.