Best's Capital Adequacy Ratio Model - P/C, US

Minor Adjustments Can Have a Major Impact

Assess P/C insurers' capitalization levels across risk categories and understand how changing conditions impact the balance sheet.

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BCAR abstract image

About Best's Capital Adequacy Ratio Model - P/C, US

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

Use this model in planning for your organization's capital needs and to help manage regulatory capital needs.

Determine if an insurer's available capital is adequate against eight risk categories and five value at risk (VaR) scenarios.

Find out which risks create more required capital 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 for all US property/casualty insurers.

Solution For

  • Insurers
  • Reinsurers
  • Brokers
  • Consultants
  • Asset Managers
  • Risk Managers
  • Ratings Advisory
  • Actuaries

Product Features

  • A desktop application offering access to a capital model consistent with the methodology used by AM Best analysts for US P/C statutory data
  • Access to the current data year plus three years prior
  • Preloaded statutory data for all US property/casualty insurers
  • BCAR scores calculated at five VaR levels: 95.0%, 99.0%, 99.5%, 99.6% and 99.8%
  • The ability to export your results to Excel with the following worksheets:
    • BCAR Summary Showing Net Required Capital, Available Capital and BCAR Scores
    • Investment Risk
    • Interest Rate Risk
    • Credit Risk
    • Loss and Loss Adjustment Expense Reserve Risk
    • Net Premiums Written Risk
    • Business Risk
    • Growth Factor Worksheet

A custom version of this product without preloaded data is also available.

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