PHIAC’s proposed capital standards – The capital stress test
PHIAC has recently confirmed changes to the Solvency and Capital Adequacy Standards to come into effect on 31 March 2014 (Capital Adequacy) and 1 July 2014 (Solvency). Health insurers have had a chance over the last year to consult with PHIAC on the proposed changes and identify issues and challenges with the new regulatory regime.
Practitioners in the industry acknowledge that methodology and approaches will evolve and adapt over time. Developments in the calculation of the capital stress test component of the Capital Adequacy Standards is one area that is being keenly watched by all practitioners.
Ignatius has been part of an effort to identify the various approaches that have emerged across the industry. He recently reflected back to practitioners the variety of approaches at the Risk and Regulation Seminar in August 2013. To listen to what he found, click the link below.