MCRs

As part of measures to mitigate the impact of the Domestic Debt Exchange Programme on insurance companies, the National Insurance Commission will place a moratorium on the Minimum Capital Requirements (MCRs) and Capital Adequacy Ratio (CAR) on the insurers. This means the MCR and CAR will not be enforced but regulated entities will be required to operate in such a way so as to be able to pay claims and operating expenses. The current minimum capital requirement of life and non-life Insurance companies is ¢50 million, whilst the CAR is 14.2%. In a letter to the insurance firms on draft…