Transcription of Risk-Based Capital Framework for Insurers [Version 3.0]
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Issued on: 20 June 2013 Risk-Based Capital Framework for Insurers [ version ] PART A OVERVIEW .. 1 1. Objectives .. 1 2. Legal provisions .. 2 3. Applicability .. 2 4. Effective date .. 3 5. [Deleted].. 3 PART B Capital adequacy .. 4 6. Capital adequacy Ratio the formula .. 4 7. Total Capital available .. 5 8. Deductions from Capital .. 7 9. Total Capital required .. 7 PART C Capital REQUIRED TO MITIGATE MAJOR RISKS .. 8 10. Total Capital required .. 8 11. Capital charges for credit risk .. 8 12. Capital charges for market risk .. 9 13. Capital charges for general insurance liabilities .. 9 14. Capital charges for life insurance liabilities .. 11 15. Capital charge for operational risk .. 12 16. Surrender value Capital charges .. 13 PART D VALUATION OF ASSETS AND LIABILITIES .. 14 17. Overview .. 14 18. Valuation of assets .. 14 19. Valuation of liabilities .. 14 20. [Deleted].. 16 21. [Deleted].. 16 PART E INVESTMENT OF insurance FUNDS.
6.1 The Capital Adequacy Ratio (CAR) measures the adequacy of the capital available in the insurance and shareholders’ funds of the insurer to support the total capital required.
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