Hi Graham, in the newer version of the BCAR reading, the diagram for the AM Best Rating Process has a "Maximum + 2" in red. Do you know what this means? The "Maximum + 2" was not in the previous version.
I'm glad you asked because I forgot to update that diagram in the wiki. Thx!
I couldn't find an explanation for "Maxiumum +2" but I assume it means the BCAR assessment cannot improve by more than 2 levels (out of the 6 available levels) at the stage where enterprise risk management is considered.
This won't be on the exam, but to answer NycxBattle's question and complement our understanding of the BCAR reading, here's an excerpt from A.M. Best's rating methodology.
I would think of Comprehensive Adjustment as a catch-all item applied at the end to allow for manual adjustment per Best's judgment. Rating lift/drag appears to be the financial support/burden associated with an insurer's affiliates.
Comments
I'm glad you asked because I forgot to update that diagram in the wiki. Thx!
I couldn't find an explanation for "Maxiumum +2" but I assume it means the BCAR assessment cannot improve by more than 2 levels (out of the 6 available levels) at the stage where enterprise risk management is considered.
I couldn't find much detail in this rating process in the source document.
We are some consideration or key points in the
"Comprehensive Adjustment"
"Rating Lift/Drag"
These two process seems very generic.
I don't think the source elaborates more on that so it will probably not be something you have to worry about on the exam
This won't be on the exam, but to answer NycxBattle's question and complement our understanding of the BCAR reading, here's an excerpt from A.M. Best's rating methodology.
I would think of Comprehensive Adjustment as a catch-all item applied at the end to allow for manual adjustment per Best's judgment. Rating lift/drag appears to be the financial support/burden associated with an insurer's affiliates.