Structure of the SCR Standard Formula


For a firm calculating its SCR on the basis of the standard formula, its SCR is the sum of the following items:

  1. (1) the basic SCR;
  2. (2) the capital requirement for operational risk, as set out in 5; and
  3. (3) the adjustment for the loss-absorbing capacity of technical provisions and deferred taxes, as set out in 6.

[Note: Art. 103 of the Solvency II Directive]