DBRS Requests Comments on Proposed 2017 Update to Global Insurance Methodology

DBRS Limited (DBRS) is requesting comments on the 2017 update of its Global Methodology for Rating Life and P&C Insurance Companies and Insurance Organizations (the Global Insurance Methodology). This update has several important changes from the 2016 edition, but no rating changes are anticipated from its adoption. DBRS would appreciate comments on this update, particularly on areas that are highlighted below.

Highlights of this updated Global Insurance Methodology include:
-- The introduction of quantitative metrics and associated ranges as inputs for the evaluation of certain building blocks.
-- The inclusion of a Life Insurance Capital Adequacy Test (LICAT) appendix, providing a summary overview of the regulatory framework. No ratio range expectations were included in this appendix as DBRS will complete its analysis when adequate data becomes available.
-- The inclusion of a Solvency II Directive appendix, providing an overview of the regulatory framework. Indicative ranges for the Solvency Coverage Ratio were included.

In this update, DBRS introduces specific key quantitative metrics for certain building blocks, as well as indicative ranges for use as inputs in the objective assessment of that specific building block using methodology grid sub-factors. The indicative metrics and ranges are derived from historical data and market experience. Their purpose is to facilitate greater transparency with the market as to the inputs used in assessing an insurer’s financial strength. While important in the rating process, these metrics are not the sole consideration in evaluating the building blocks and ultimately the rating.

Comments should be received on or before December 27, 2017. Please submit your comments to the following e-mail address: financial.institutions.comments@dbrs.com. DBRS publishes on its website all comments received except in cases where confidentiality is requested by the respondent.

Note:
DBRS criteria and methodologies are publicly available on its website www.dbrs.com under Methodologies.