What does capital at risk mean?

capital at risk meaning in Insurance Dictionary

Capital that's available to aid the retention of threat by a self-insurer or underwriter of risk. These types of "risk capital" could be needed in a captive insurance company for repayment of losses, in case advanced collected is inadequate to cover losses and costs. Usually, it's a sum more than statutory money and that can therefore be properly used as collateral to ceding organizations. Might also be called surplus funds or risk-bearing capital. See in addition Threat capital; Surplus.