
New AM Best briefing to be on changes to ART criteria
AM Best's next briefing will be on the topic of Captives & Cell Companies: Revisions to 'Alternative Risk Transfer (ART)' criteria.
The briefing will be online on Wednesday, 29 January 2025 at 14:00 GMT
Moderated by Riccardo Ciccozzi (pictured), director, market development – Europe, the panellists include Dr. Mathilde Jakobsen, senior director, analytics (Amsterdam) and Myles Gould, senior director, credit rating criteria research & analytics (London), who will give a detailed update on the proposed changes to the rating agency’s criteria procedure "Alternative Risk Transfer (ART)."
Renamed "Rating Captives and Other Alternative Risk Transfer Entities", the criteria procedure includes proposed updates that establish a clear approach from AM Best to assigning financial strength ratings (FSRs) and issuer credit ratings (ICRs) to individual incorporated cell entities.
The panel will discuss the proposed changes to the criteria, which include:
• Name and define cell companies and the various cell structures used in the insurance industry
• Map out how specific factors of unincorporated cell companies and individual incorporated cell entities are viewed within Best's Credit Rating Methodology (BCRM) and support a path to assigning FSRs and ICRs
• Set a baseline operational level for individual incorporated cells to be considered for rating assignment
• Establish that AM Best analytical teams will likely use external parties to aid in the confirmation of a cell entity's baseline operational and legal capabilities
• Affirm that the weakest-link approach remains the path to rating unincorporated cell companies
• Add an appendix supporting data requests of cell companies
For more information contact AM Best.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.