Insurance Act

42. Determination of capital required

Edition: 2023-12-11 · In force

42. Determination of capital required

(1)In determining the capital required, an insurer shall—

(a)take into consideration the capital for insurance risk, market risk, credit risk and operational risk; and

(b)apply such capital charges on assets and liabilities as shall be determined by the Authority from time to time.

(2)For the purpose of this section, "capital charge" means the proportion of capital required to take care of the potential deterioration of the economic value of an asset and the uncertainty in estimating liability due to the occurrence of an adverse event.[Act No. 12 of 1994, s. 9, Act 4 of 2004, s. 76, Act No. 10 of 2010, s. 53, Act No. 50 of 2016, s. 6.]

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Source: Kenya Law