Question
As per IRDAI norms, an insurer must maintain a solvency
ratio of at least 150%. If an insurer’s available solvency margin is ₹900 crore, what should be its maximum required solvency margin to comply?Solution
• Solvency ratio = ASM ÷ RSM ≥ 150%. 900 ÷ RSM ≥ 1.5 → RSM ≤ ₹600 crore.
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