Insurance pools have used different approaches to answer questions about their funding practices like confidence levels, a risk-based capital formula, and/or financial ratios. Many pools have moved from being an assessable self-insurance group to a non-assessable model owned by the policy holders. This requires a change in how funding adequacy is evaluated.
This paper explores various solvency measures pools use to establish and assess funding level, and also discuss the context in which the specific measures developed. In addition, it addresses alternative strategies and approaches to establish and assess funding levels.