Allocation of capital to specific sub-divisions of an insurer’s business enables the setting of profit targets at a group, company and product level in a manner consistent with overall ROC targets.


This process allows targets for return on capital to properly reflect the risk profile of the products or business concerned.

It also enables insurers to understand the impact of the mix of products on the risk profile and profitability of the company as well as the sources and value of diversification with the company.

Talk to us about risk-based capital allocation

Scott Collings

Scott Collings

Ph  +61 2 8252 3378