Capital adequacy
Term · Insurance and risk management · MLC-T-INS-000669
The sufficiency of an insurer's financial resources to cover its liabilities and absorb potential losses, as determined by regulatory requirements and internal risk assessments. It measures the extent to which an insurer holds enough capital to meet its obligations under adverse scenarios. Regulators often set minimum capital adequacy ratios based on risk-weighted assets.
| Identifier | MLC-T-INS-000669 |
|---|---|
| Field | Insurance and risk management |
Record as JSON
{
"id": "MLC-T-INS-000669",
"term": "Capital adequacy",
"field": "Insurance and risk management",
"definition": "The sufficiency of an insurer's financial resources to cover its liabilities and absorb potential losses, as determined by regulatory requirements and internal risk assessments. It measures the extent to which an insurer holds enough capital to meet its obligations under adverse scenarios. Regulators often set minimum capital adequacy ratios based on risk-weighted assets.",
"url": "https://mlchart.com/terminology/insurance/capital-adequacy/"
}
Record 436 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.