Standard & Poor's new risk-based capital adequacy model will probably not raise capital requirements overall, but some insurance companies may have to make adjustments as a result, the agency said today.
A report by the firm said the new model will provide a globally consistent framework while recognizing material regional differences. "Although we have used stochastic techniques to establish some of the new charges, it will remain a static model," the report said.
The rating firm said it is looking for insurers' input.
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