Summary of S&P’s Proposed Insurer Risk-Based Capital Adequacy Model
On December 6th, S&P issued the first draft material update to their Risk-Based Capital Adequacy methodology in more than 10 years. It is comprehensive and covers all aspects of the original criteria. S&P expects that up to 10% of ratings may move, with likely more upgrades than downgrades. The proposals will impact the underlying Capital and Earnings assessment, with possible changes for up to 35% of insurers.