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in Carrier Management

BCAR Revisited: Why A.M. Best Is Updating Its Capital Ratio

For over a year, analysts at A.M. Best have been working on a planned move to a "stochastic BCAR"—essentially, a capital adequacy ratio that will incorporate computer simulation results into calculations of the risk charge factors used to determine the ratio. In this interview with Carrier Management, A.M. Best Executive Vice President and Chief Operating Officer Matthew Mosher explains what prompted the change and offers a high-level view of what carriers can expect going forward.

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