Insurers' risk-based capital ratio up in Q3

Insurance firms in Korea saw their risk-based capital ratio rise in the third quarter of last year, data showed Tuesday.

The risk-based capital (RBC) ratio of local insurance firms stood at 218.3 percent as of end-September, up 1 percentage point from three months earlier, according to the data from the Financial Supervisory Service.

The RBC ratio is derived from the actual solvency capital divided by the minimum solvency capital required. It measures an insurer's ability to absorb losses and pay insurance money to policyholders.

Local insurers are required to maintain the ratio at 100 percent or above, while the watchdog advises insurance firms to have ratios of 150 percent or higher.

Insurance firms here have been required to gradually increase their capital reserves to better cope with tougher global accounting standards for insurers. (Yonhap)