Glossary beginning with S

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S&P rating: Credit risk assessment performed by Standard and Poor’s. An A rating means that issuers of debt securities have a high capability of servicing their obligations giving consideration to the emergence of factors diminishing that capability.
Solvency I: the solvency margin for insurance companies. The system operating in the European Union from the 1970s to 31 December 2015.
Solvency II: capital requirements for European insurance companies based on the risk undertaken. The requirements have been effective as of 1 January 2016.
Solvency margin: The amount of an insurance undertaking’s shareholder funds no lower than the minimum guarantee fund which is required to ensure that the undertaking remains liquid.
Solvency margin coverage ratio: Statutory ratio specifying the level of capital security for the business conducted by an insurer. By law, this ratio should be above 100%.
Sum insured: The cash amount for which an insured object is insured. In non-life insurance the sum insured ordinarily constitutes the upper limit of the insurer’s liability.