capital adequacy
Capital adequacy refers to the funding required of a risk financing vehicle, such as a captive insurance company, to meet the liabilities insured.
capital adequacy
Capital adequacy refers to the funding required of a risk financing vehicle, such as a captive insurance company, to meet the liabilities insured.
Additional Information
With regard to enterprise risk management (ERM), the term refers to the amount of capital needed to satisfy a specified economic capital constraint (e.g., a certain probability of ruin), usually calculated at the enterprise level.
