PINS 3.3.1 What is an insurer's MCR?
The minimum capital requirement or MCR for an insurer is the higher of:
Note 1 The MCR is the lowest acceptable level of eligible capital below which policyholders would be exposed to unacceptable risks if the insurer were allowed to continue to operate.
Note 2 If the Regulatory Authority considers that a higher MCR is appropriate for an insurer, the authority may impose the higher requirement as a condition to the insurer's authorisation under FSR, art 31.
Note 3 An insurer will be in breach of r 1.2.2 if the insurer's eligible capital falls below its MCR. Under r 3.9.1 and r 3.9.2, an insurer must inform the Regulatory Authority of any possible breach or actual breach of r 1.2.2.
|Amended by QFCRA RM/2015-1 (as from 1st July 2015).|