Solvency II Art.103-109: Arts 103 to 105, 108 to 110 Calculate the standard formula correctly, with approval for undertaking-specific parameters

What does Art.103-109 require?

The standard formula SCR is the Basic SCR (non-life, life, health underwriting, market and counterparty default modules and their sub-modules, aggregated by prescribed correlations and calibrated to 99.5 percent over one year) plus operational risk, less the loss-absorbing capacity of technical provisions and deferred taxes (discretionary benefits capped). Undertakings may, with approval, replace a subset of underwriting parameters with undertaking-specific parameters calibrated on their own data, and may use simplified calculations where justified by the nature, scale and complexity of risks; the supervisor may require undertaking-specific parameters where the risk profile deviates significantly.