The need for insurance companies to be capitalized according to the inherent riskiness of the type of insurance they sell. Higher-risk types of insurance, liability as opposed to property business, generally necessitate higher levels of capital.

"Risk-based Capital" In Context

"Guardian's risk-based capital was 486% at year-end, one of the strongest in the life insurance industry. Consolidated statutory operating income before dividends increased 2% from 2010 to $1.1 billion. Additionally, in spite of extraordinary ..."