I'm trying to understand what constitutes a good SCR ratio. I want to know the ideal or acceptable range for this ratio, and how it might impact my financial health or business performance.
6 answers
Nicola
Mon Nov 11 2024
Post Solvency II, insurance firms are mandated to maintain a specific level of financial resilience.
Giulia
Mon Nov 11 2024
They must possess eligible own funds that are at least equivalent to their Solvency Capital Requirement (SCR) continually.
KDramaLegend
Mon Nov 11 2024
This regulation aims to prevent supervisory intervention and ensure the stability of the insurance sector.
LitecoinLodestar
Mon Nov 11 2024
The SCR coverage ratio serves as a crucial metric for assessing an insurance company's financial health.
ethan_thompson_psychologist
Sun Nov 10 2024
It is calculated by dividing the eligible own funds by the SCR.