The headquarters of the Monetary Supervisory Service / Korea Instances picture by Kim Joo-sung
Insurance coverage corporations in Korea noticed their risk-based capital ratio rise within the third quarter of final 12 months, information confirmed Tuesday.
The danger-based capital (RBC) ratio of native insurance coverage corporations stood at 218.3 % as of end-September, up 1 proportion level from three months earlier, in accordance with the information from the Monetary Supervisory Service.
The RBC ratio is derived from the precise solvency capital divided by the minimal solvency capital required. It measures an insurer’s capability to soak up losses and pay insurance coverage cash to policyholders.
Native insurers are required to keep up the ratio at 100% or above, whereas the watchdog advises insurance coverage corporations to have ratios of 150 % or larger.
Insurance coverage corporations right here have been required to steadily enhance their capital reserves to raised deal with more durable international accounting requirements for insurers. (Yonhap)
