Standard formula insurers face higher operational risk capital charge

Change to definition of unit-linked expenses would increase firms' SCR


Life insurers using the Solvency II standard formula could see their operational risk capital requirement rocket following an update to the draft delegated acts.

Industry sources say a non-public version of the delegated acts, dated July 28, alters the definition of the expense base for unit-linked policies to implicitly include acquisition costs. A strict reading of the new text suggests firms will now have to include all expenses incurred in issuing a new unit-linked contract, including

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: