Solvency II

Overall Approach

Sets out the high level plan in respect of the requirements for managing agents’ preparation for Solvency II.

Internal Model SCR

Internal Model SCR is a dedicated quantitative review of syndicate models and outputs as a key input to the LIM
Primary Audience:
Risk management function, Actuarial function, Capital modelling actuaries

Valuation and Balance Sheet

Focuses primarily on the valuation of assets and liabilities, excluding technical provisions.
Primary Audience:
Finance function, Investment managers

Technical Provisions and Standard Formula

This workstream will focus on the calculation of Technical Provisions (TPs) and the Standard Formula SCR.
Primary Audience:
Actuarial function, Finance function

Model Validation

Focuses on ensuring syndicate models produce an appropriately calibrated SCR and that models are demonstrably compliant with the relevant tests and standards of the Directive.
Primary Audience:
Risk management function, Actuarial function, Capital modelling actuaries, IT departments

Governance, Risk Management and Use

Focuses on ensuring the Internal Model is adequately controlled and robust processes and governance structures are in place.
Primary Audience:
Risk management function, risk managers, compliance managers, Internal audit

Reporting and Disclosure

Focuses on the framework, process and systems that agents need to have in place to meet the relevant requirements.
Useful for:
Finance function

Documentation and Final Application

Focuses on ensuring the quality and integrity of the overall LIM application by ensuring that all agents prepare sufficient and appropriate evidence.
Useful for:
Programme managers, Senior Nominated Persons

Previous Solvency II Guidance

Click on the link below to access previous Solvency II Guidance including information on Gap Analysis, Implementation Plans and QIS 5:

Model Change