Solvency Capital Requirement
E554130
The Solvency Capital Requirement is a risk-based capital threshold under the Solvency II regime that insurers must hold to ensure they can meet obligations even under severe adverse conditions.
Statements (47)
| Predicate | Object |
|---|---|
| instanceOf |
Solvency II concept
ⓘ
regulatory capital requirement ⓘ risk-based capital standard ⓘ |
| aggregationMethod | correlation matrices between risk modules ⓘ |
| allows | use of undertaking-specific parameters under conditions ⓘ |
| appliesOn |
group level
ⓘ
solo level ⓘ |
| appliesTo |
insurance undertakings
ⓘ
reinsurance undertakings ⓘ |
| basedOn | risk profile of the undertaking ⓘ |
| breachConsequence | requires supervisory intervention and recovery plan ⓘ |
| calculatedBy |
full internal model
ⓘ
partial internal model ⓘ standard formula ⓘ |
| calibration | 1-in-200 year adverse event ⓘ |
| confidenceLevel | 99.5% value-at-risk of basic own funds ⓘ |
| covers |
credit risk
ⓘ
intangible risk modules as specified in Solvency II ⓘ market risk ⓘ operational risk ⓘ underwriting risk ⓘ |
| definedIn | Solvency II Directive 2009/138/EC NERFINISHED ⓘ |
| effectiveFrom | 1 January 2016 ⓘ |
| expressedAs | amount of eligible own funds required ⓘ |
| higherThan | Minimum Capital Requirement ⓘ |
| introducedBy | Solvency II regime NERFINISHED ⓘ |
| jurisdiction | European Union ⓘ |
| legalNature | Pillar 1 quantitative requirement under Solvency II ⓘ |
| linkedTo | own funds eligibility criteria ⓘ |
| measuredIn | economic capital ⓘ |
| methodology | modular approach under standard formula ⓘ |
| objective |
harmonise solvency standards across EU insurers
ⓘ
reflect all quantifiable risks faced by insurers ⓘ |
| overseenBy | European Insurance and Occupational Pensions Authority NERFINISHED ⓘ |
| partOf | Solvency II framework NERFINISHED ⓘ |
| purpose |
ensure insurers can meet obligations under severe adverse conditions
ⓘ
limit probability of ruin of insurers ⓘ protect policyholders and beneficiaries ⓘ |
| regulator | national supervisory authorities in EU Member States ⓘ |
| relatedTo | Minimum Capital Requirement ⓘ |
| requires |
adequate risk management system
ⓘ
public disclosure in Solvency and Financial Condition Report ⓘ regular reporting to supervisors ⓘ |
| riskMeasure | value-at-risk of basic own funds ⓘ |
| subjectTo | supervisory approval for internal models ⓘ |
| timeHorizon | one-year time horizon ⓘ |
| usedFor | supervisory review process under Solvency II ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.