Simplification in the Standard Formula


  1. (1) A firm may use a simplified calculation for a specific sub-module or risk module where the nature, scale and complexity of the risks it faces justifies it.
  2. (2) A firm must calibrate its simplified calculation in accordance with Solvency Capital Requirement – General Provisions 3.3 to 3.4.

[Note: Art. 109 of the Solvency II Directive]