The solvency margin of an insurance company refers to the excess of its assets over its liabilities

       It is an important indicator of the financial strength and ability of the company to meet its obligations.

       The minimum mandated is 1.5

       A high solvency margin indicates that an insurance company has a strong financial position and is able to withstand adverse market conditions, unforeseen events, and catastrophic losses.

       LIC of India has a solvency margin of 1.85 but is 19^th in the list.

   Solvency Margins can be increased by the following methods

•       Thesolvency margin of an insurance company refers to the excess of its assets overits liabilities

•       Itis an important indicator of the financial strength and ability of the companyto meet its obligations.

•       Theminimum mandated is 1.5

•       Ahigh solvency margin indicates that an insurance company has a strong financialposition and is able to withstand adverse market conditions, unforeseen events,and catastrophic losses.

•       LICof India has a solvency margin of 1.85 but is 19^th in the list.

SolvencyMargins can be increased by the following methods

1. Increase capital: Shareholders can infuse fresh Capital.
2. Improve underwriting practices: Insurance companies can improve their underwriting practices to reduce the risk of claims.
3. Diversify investments: Insurance companies can diversify their investments to reduce the risk of losses..
4. Reduce expenses: Insurance companies can reduce their expenses by cutting costs, improving efficiency, and optimizing their operations.
5. Reinsurance: Insurance companies can purchase reinsurance, which is insurance for insurers.

1. Increase capital: Shareholders can infuse fresh Capital.
2. Improve underwriting practices: Insurance companies can improve their underwriting practices to reduce the risk of claims.
3. Diversify investments: Insurance companies can diversify their investments to reduce the risk of losses..
4. Reduce expenses: Insurance companies can reduce their expenses by cutting costs, improving efficiency, and optimizing their operations.
5. Reinsurance: Insurance companies can purchase reinsurance, which is insurance for insurers.