Capacity

{
  "id": "MLC-T-INS-000667",
  "term": "Capacity",
  "field": "Insurance and risk management",
  "definition": "The maximum amount of insurance coverage an insurer or the entire insurance market is willing and able to provide for a particular risk or class of risks. This is determined by factors such as an insurer's financial strength, capital reserves, and reinsurance arrangements. Insurers with greater capital can offer higher limits of liability.",
  "url": "https://mlchart.com/terminology/insurance/capacity/"
}