Page 99 - India Insurance Report 2023- BIMTECH

India Insurance Report - Series II 87

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Fig. 1 aptly describes the RBC process. It will be noticed here that, apart from the mathematical
calculation of capital required, various qualitative requirements also become very important in Risk-
Based Capital assessment.

Another important aspect worth paying attention to is the inclusion of several aspects of risks in the
mathematical estimation of capital requirement, as shown in Fig.2 below. It can be seen that the capital
assessment is based on several types of market and other risks apart from insurance risk.

4 Source: CEIOPS (Committee of European Insurance and Occupational Pensions Supervisors)