risk-based capital (RBC) requirements
Risk-based capital (RBC) requirements refers to a method developed by the National Association of Insurance Commissioners to determine the minimum amount of capital required of an insurer to support its operations and write coverage.
Additional Information
The insurer's risk profile (i.e., the amount and classes of business it writes) is used to determine its risk-based capital requirement. Four categories of risk are analyzed in arriving at an insurer's minimum capital requirement: asset, credit, underwriting, and off-balance-sheet.
