Understanding Solvency Regulation in the Insurance Sector

Understanding Solvency Regulation in the Insurance Sector

The article explores the critical role of solvency regulation in ensuring the financial stability and reliability of insurance companies. It delves into the framework of rules established by governments to maintain insurers’ ability to meet obligations to policyholders. Key considerations such as capital adequacy, reserve adequacy, and liquidity management are discussed, emphasizing a proactive approach to preventing systemic risks.

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