The requirements specified in this Module vary according to the Category of insurance licensee concerned, the volume of business undertaken and its inherent risk. The purpose of such requirements is to ensure that insurance licensees maintain levels of capital sufficient to absorb unexpected losses, within a reasonable confidence interval. The capital levels specified here, in other words, are not sufficient to absorb all unexpected losses. Insurance licensees are also required to make their own assessment of the prudent level of capital that they need to hold.