Sept. 20 (Bloomberg) -- The Swiss Financial Markets Supervisory Authority has rejected the method used by four insurers to calculate their solvency.
Finma initially tested the models of those insurers “whose solvency requires heightened attention,” and will also review the rest, according to a session of the lower house of the Swiss parliament published on its website.
The solvency test introduced in January requires insurers to provide a mark-to-market valuation of assets and liabilities that for the first time takes into account their investments. Half of Switzerland’s 140 insurers that need to apply the new capital rules have adopted Finma’s standard model to calculate their solvency levels, while the others used provisionally approved internal models.
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