Best's Capital Adequacy Ratio Model - P/C, US and L/H, US
Minor Adjustments Can Have a Major Impact
Assess P/C and L/H insurers' capitalization levels across risk categories and understand how changing conditions impact the balance sheet, all on a convenient online platform.
About Best's Capital Adequacy Ratio Model - P/C, US and L/H
Best's Capital Adequacy Ratio (BCAR) depicts the quantitative relationship between an insurer's balance sheet and its operating risks. The BCAR Model product lets you evaluate an insurer's capitalization and risk profile with a model that is consistent with the methodology used by AM Best analysts, to capture the combined impact of financial risks associated with adverse market conditions.
Benefits of Best's Capital Adequacy Ratio Model - P/C, US and L/H
Determine if an insurer's available capital is adequate against eight risk categories and five value at risk (VaR) scenarios.
Find out which risks increase the amount of capital required at each VaR level.
Use the Investment Testing and Credit Risk Testing pages to model changes in your investment portfolio and reinsurance programs.
Run multiple adjustments to any insurer’s balance sheet. Change parameters and capital charges at each VaR and generate insightful reports.
Access preloaded statutory data and run new base scores for all US property/casualty and life/health insurers.
NEW for P/C: Create stressed records for Natural Catastrophe, Terrorism and/or Surety.
NEW for P/C: Include additional factors for Mortgage BCAR in B5, as well as Terrorism and/or Surety in B8.
Solution For
- Insurers
- Reinsurers
- Brokers
- Consultants
- Asset Managers
- Risk Managers
- Ratings Advisory
- Actuaries
Product Features
- NEW: An online application offering access to a capital model consistent with the methodology used by AM Best analysts for US P/C and L/H statutory data
- Access to current-year data as well as data from the prior year
- Preloaded statutory data to run new BCAR scores for all US property/casualty insurers
- BCAR scores calculated at five VaR levels: 95.0%, 99.0%, 99.5%, 99.6% and 99.8%
- A “Custom BCAR” version of the product is included, providing an option for users to upload their own data to generate a BCAR score
- The ability to export your results to Excel with the following worksheets:
- Bond Details
- Fixed Income Securities
- Common Stock Details
- Equity Securities
- Investment Summary (Common Stock Details + Equity Securities)
- Interest Rate
- Reinsurer Details
- Recoverables
- Credit
- Net Premiums Written
- Mortgage*
- Net Premiums Written
- Business
- Natural Catastrophe
- Terrorism Catastrophe*
- Surety Catastrophe*
- Potential Catastrophe
- Growth Factor
- Surplus Notes
*These options are only available if selected during the "run new BCAR" process.
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