Solvency of Insurance Undertakings (Mueller-Report) - Eiopa

- 61 -The following table is a summary of the above (also see enclosure 2):Intervention level In % RBC MeasuresNo intervention > 100 % -CAL 100% The company must submit within a period of 45 days a plan torestore adequate capital resourcesRAL 75 % The company has to comply with a catalogue of measures ofthe supervisory authorityACL 50 % Right of the supervisory authority to take over management ofthe companyMCL 35 % Obligation of the supervisory authority to take over control ofthe companyThe following table is to give an idea of the number of interventions by the supervisory authority innon-life insurance in 1994 and 1995 (see NAIC: P&C Risk Based Capital Newsletter, Volume 2.1, July1996, p. 2):Intervention level Nos. in 1994 In % Nos. in 1995 In %No intervention 2348 97,8 2278 97,2CAL 20 0,8 30 1,3RAL 13 0,6 12 0,5ACL 5 0,2 5 0,2MCL 27 1,1 19 0,8The table shows that more than 97% of the insurance companies crossed the hurdle. Please note thatthe above figures may not be very meaningful because it is not clear whether in the case of insurancecompanies to which the supervisory authority’s attention had been directed there was actually a needof intervention or whether rather errors had been made when the RBC was calculated.