In the present era, as we have all seen and experienced, especially in recent times, Insurance has become a necessity for everyone. Insurance, whether it be for personal or commercial purposes, has become an indispensable part of our lives. Being a vast industry, one must be aware of many things to learn and perform day-to-day or policy-related operations. In this Blogpost, a portion of those learnings will be discussed. We will discuss Assigned Risk and FAIR Plans for Insurance Companies in the US.
Assigned Risk Plan
Using the concept of assigned risk, certain […]
What is Risk-Based Capital?
The method for measuring the least measure of capital appropriate for a reporting entity to maintain its overall business operations in a reflection of its size and risk outline is known as Risk-Based Capital Model or RBC. It puts a limit on the quantity of risk that an organization can take. According to RBC, a company having a higher amount of risk should hold a higher amount of capital. A cushion is provided by capital to a company against solvency. It is not necessarily the whole sum of capital that an insurer […]