2010 BSCR Analysis Report for Class 4 and 3B (Re)Insurers (December 2011)

Summary

This is a BMA market analysis report reviewing the 2010 financial year results of Class 4 and 3B (re)insurers, based on Capital and Solvency Returns, Statutory Financial Returns and general purpose financial statements already submitted to the Authority. It is an informational publication, not a rule or directive, and imposes no new filing or compliance requirements beyond those already in force under existing insurance legislation.

• Risk distribution: Reviews BSCR-based risk profiles across underwriting, market, credit and operational risk categories.
• Capitalisation: Analyses average ECR ratios and capital and surplus trends over four years.
• Underwriting and catastrophe risk: Covers underwriting performance, catastrophe exposure and stress scenario results, including worst-case scenarios.
• Investment, liquidity and operational risk: Reviews investment performance, liquidity ratios and Commercial Insurer Risk Assessment (CIRA) operational risk results.
• Risk outlook: Sets out BMA's forward-looking view of economic and capital market vulnerabilities affecting the sector.

The report references the legal framework under which Class 4 and 3B (re)insurers are supervised, namely the Insurance Act 1978, the Insurance (Prudential Standards) (Class 4 and 3B Solvency Requirement) Rules 2008, and related Returns and Accounts Regulations, but does not itself create new obligations, deadlines or transitional requirements for insurers.

Applies to

Class 4 (re)insurers, Class 3B (re)insurers