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