Examples of Minimum Capital Requirement in a sentence
The supervisory regime should provide for a risk-sensitive requirement, which is based on a prospective calculation to ensure accurate and timely intervention by supervisory authorities (the Solvency Capital Requirement), and a minimum level of security below which the amount of financial resources should not fall (the Minimum Capital Requirement).
The Minimum Capital Requirement is calculated by determining individual components in respect of various specific risks that the Insurer is exposed to, and adding those components together to arrive at the Minimum Capital Requirement.
It is necessary that the Minimum Capital Requirement is calculated in accordance with a simple formula, on the basis of data which can be audited.
When the amount of eligible basic own funds falls below the Minimum Capital Requirement, the authorisation of insurance and reinsurance undertakings should be withdrawn, if those undertakings are unable to re-establish the amount of eligible basic own funds at the level of the Minimum Capital Requirement within a short period of time.
This appendix sets out the manner in which an Insurer that is not a Protected Cell Company is required to calculate its Minimum Capital Requirement.