Experts call for changes to first global insurance capital standard

Concerns mount over calibration of BCR and higher loss-absorbency

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Experts say the first international capital requirement for insurers needs to be altered to better reflect firms' asset-liability matching and diversification strategies and expect the International Association of Insurance Supervisors (IAIS) will make changes during the period in which the new capital level is reported confidentially to national supervisors.

The IAIS finalised the basic capital requirement (BCR) on October 23 during the association's annual conference in Amsterdam. It is intend