Glossary
Solvency Ratio
A measure of an insurer's ability to pay long-term claims.
Solvency ratio compares an insurer's assets to its liabilities, indicating its capacity to meet claims over time. Regulators set a minimum, and a comfortable margin above it is a sign of financial stability.
Related guides
More glossary terms
DeductibleCo-payment (Co-pay)IDV (Insured Declared Value)No Claim Bonus (NCB)Claim Settlement Ratio (CSR)Incurred Claim Ratio (ICR)
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