In the world of finance, we often come across the term "surplus". This refers to the remaining amount after deducting an insurer's liabilities from its assets. It serves as a safety net for policyholders, providing protection in the event of unexpected and high claims. Essentially, it is a financial cushion that ensures the stability and security of the insurance company and its clients. This surplus is carefully managed and monitored to maintain the company's financial health. It is a crucial aspect of the insurance industry and plays a significant role in safeguarding individuals and businesses against potential risks.
