Mataracy
VIP Contributor
I will like to explain what solvency margin means.
In respect of general business, an insurer at, at all times maintain a margin of solvency which is the excess of its admissible assets over liabilities consisting of reserves for unexpired risks, reserves for outstanding claims, reserves for claims incurred but not yet reported, and funds to meet other liabilities.
The solvency margin should not he less than 15% of gross premium income of the company less reinsurance premium paid out during the year under review or the minimum paid -up capital, whichever is greater.
For the purposes of calculating the solvency margin, all moneys owned by policyholders, brokers or agents by way of premium due yo but not received by the insurer as at the end of the relevant year shall not count as admissible assets .
According to the law Failure to comply with the solvency margin levels within a stipulated period of time could constitute a good ground for the cancellation of the registration of the insurer.
You can equally contribute what you know or idea that you have about this also and it will be helpful.
In respect of general business, an insurer at, at all times maintain a margin of solvency which is the excess of its admissible assets over liabilities consisting of reserves for unexpired risks, reserves for outstanding claims, reserves for claims incurred but not yet reported, and funds to meet other liabilities.
The solvency margin should not he less than 15% of gross premium income of the company less reinsurance premium paid out during the year under review or the minimum paid -up capital, whichever is greater.
For the purposes of calculating the solvency margin, all moneys owned by policyholders, brokers or agents by way of premium due yo but not received by the insurer as at the end of the relevant year shall not count as admissible assets .
According to the law Failure to comply with the solvency margin levels within a stipulated period of time could constitute a good ground for the cancellation of the registration of the insurer.
You can equally contribute what you know or idea that you have about this also and it will be helpful.