Best's Capital Adequacy Ratio Model

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In conjunction with changes to Best's Credit Rating Methodology, and underpinned by stochastic modelling which enhances the calibration of risk factors impacting insurers, Best's Capital Adequacy Ratio Model - Universal has evolved significantly. The new tool provides even greater insight when evaluating balance sheet strength and enables users to model BCAR scores in accordance with their risk appetite.

The BCAR Model - Universal is an Excel-based tool that provides access to the same model used by AM Best to calculate the BCAR score for single and group insurance companies in the life and non-life sectors. Users can assess the impact of various scenarios, using different stress parameters and confidence levels, just as an AM Best analyst would, for internal modelling, planning, competitive comparisons and business development.

For more information, a demonstration or to order:

Europe & MENA:
+44 20 7397 0292

U.S. & Asia-Pacific:
+1 (908) 439-2200, ext. 5311

Perform a variety of adjustments to BCAR calculations.

The Interactive Summary Report allows users to see the impact of changes to VaR and stress parameters

Perform a variety of adjustments to BCAR calculations.

Gain greater insight into the effect of changing VaR confidence levels over time.

Perform a variety of adjustments to BCAR calculations.

Compare Available Capital to Net Required Capital and the resulting BCAR score.

Best's Capital Adequacy Ratio (BCAR) is an integrated review of an insurer's underwriting, financial performance, and asset leverage. Best's Capital Adequacy Ratio Model - Universal allows you to:

  • Utilise the actual model used by AM Best's rating analysts.
  • Run BCAR scores on any company using your own assumptions.
  • Run assessments for life and non-life insurers.
  • Enter data via the easy-to-use Data Input screen.
  • Link the Data Input screen to your existing data sources.
  • Assess the impact on the BCAR score due to changes to:
    • Reinsurance programs
    • Asset valuations
    • Business line diversification
    • Losses
    • Asset allocations within a group
  • Review results under different parameters: Standard, CatStress, Terror.
  • Calculate results under different confidence levels (VaR Value at Risk): VaR 95.0, VaR 99.0, VaR 99.5, VaR 99.6, VaR 99.8.
  • Use the interactive Summary Report to change parameters on the fly and generate insightful and revealing reports.

Your purchase includes:

  • An Excel-based tool that allows you to make assumptions or adjustments to available capital and the net required capital for your company or others
  • Updates -- any changes to the BCAR calculation or methodology will be provided to users
  • Product support through our Technical Products Support group

NOTE: The results or output created by use of the Best's Capital Adequacy Ratio Model - Universal ("Output") is for informational and internal purposes only, and such Output may not match or be consistent with the official BCAR scores for the same rating unit. The Output is not guaranteed or warranted in any respect by AMB. This model is not intended for use with US or Canadian statutory data.

Best's Capital Adequacy Ratio Model - Universal is a non-rating services product, and its purchase is not required as part of the rating process.