Solvency Capital Requirement - Standard Formula Simplification in the Standard Formula

Application provision

1.1 Unless otherwise stated, this Part applies to:

  1. (1) a UK Solvency II firm; and
  2. (2) in accordance with Insurance General Application 3, the Society, as modified by 8.

7.1

01/01/2016

  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]