Softening the prudential rules

After lowering the solvency margin from 130% to 120%, the regulatory authorities have once again softened the prudential rules. The amount of the technical reserves, provisioning and assets acceptable as cover for technical reserves have been revised .
The legislator authorizes certain classes of business to have a margin of provisions for more important claim fluctuation. As for assets acceptable as cover for technical reserves, companies are, henceforth, allowed to take stakes in foreign insurance and reinsurance companies up to 5%.
Finally, the share of collective investment funds in securitization recognized in the reserves rose from 10% to 15%.

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