NAIC RBC changes could favour higher-rated reinsurers

Proposed changes to the credit risk charge in the National
Association of Insurance Commissioners (NAIC)'s risk-based
capital (RBC) calculation could give the highest-rated reinsurers a
competitive advantage.
The US regulatory body's current RBC model requires insurers
to hold capital equal to a flat 10 percent charge on reinsurance
recoverables irrespective of the reinsurer's rating or whether
it is collateralised or not.
But proposals expected to come into effect between the 2018 and
2019 repo