what is the margin of solvency ? why it is mandatory for insurance companies to maintain? how to calculate the solvency margin?
Total Comments: 5
Posted: Tue Jul 10, 2007 12:03 pm Post Subject: margin of solvency
Hi Sameer,
Solvency margin refers to the excess amount of asset the insurance company has to maintain over its liabilities. It works like the capital adequacy ratio of the bank. Basically, it is the amount the insurer has to stash away in order to pay the claims during emergency. IRDA requires the insurance companies to maintain a particular level of solvency margin for their smooth functioning.
However, it has its own pros and cons. It increases the operational cost of the insurance firms and also reduces their profits. You can find more about it in the following URL.
www.irdaindia.org/1983-ALS.rtf
regards,
ArindamSenIndies
Posted: Sun Jan 27, 2008 06:05 pm Post Subject:
sorry friend ..........no idea about this.....i hope i will help you next time.........sorry
Posted: Mon Apr 19, 2010 11:43 am Post Subject: Solvency margin
am i right to said assets- liabilities=solvency margin?
Posted: Sat Feb 19, 2011 10:22 am Post Subject: solvancy margin
Dear sir,
pl find out me How much solvancy margin pad by LIC ?
& also How much remaing balance amount pad by LIC?
Posted: Tue Jul 10, 2007 12:03 pm Post Subject: margin of solvency
Hi Sameer,
Solvency margin refers to the excess amount of asset the insurance company has to maintain over its liabilities. It works like the capital adequacy ratio of the bank. Basically, it is the amount the insurer has to stash away in order to pay the claims during emergency. IRDA requires the insurance companies to maintain a particular level of solvency margin for their smooth functioning.
However, it has its own pros and cons. It increases the operational cost of the insurance firms and also reduces their profits. You can find more about it in the following URL.
www.irdaindia.org/1983-ALS.rtf
regards,
ArindamSenIndies
Posted: Sun Jan 27, 2008 06:05 pm Post Subject:
sorry friend ..........no idea about this.....i hope i will help you next time.........sorry
Posted: Mon Apr 19, 2010 11:43 am Post Subject: Solvency margin
am i right to said assets- liabilities=solvency margin?
Posted: Sat Feb 19, 2011 10:22 am Post Subject: solvancy margin
Dear sir,
pl find out me How much solvancy margin pad by LIC ?
& also How much remaing balance amount pad by LIC?
Posted: Mon Mar 28, 2011 08:12 am Post Subject:
what is the different between MOS and RBC?
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