Insurance company solvency is an insurer's ability to meet obligations to policyholders as they come due. Regulators monitor solvency through risk-based capital (RBC) ratios, asset/liability management, reserving, stress testing, and regular financial examinations. Independent rating agencies assess capital strength, earnings quality, and investment risk. Advisors consider solvency indicators and ratings when recommending carriers, especially for long-duration guarantees such as life insurance and annuity income riders.

Firms track carrier ratings, RBC ratios, and statutory filings. Large placements may be diversified across carriers to manage concentration risk and covenant requirements.