How to assess standard formula appropriateness

In the second of two articles on how firms must show the Solvency II standard formula fits their business, Matt Cocke, Andrew Kay, Phil Simpson and Fred Vosvenieks, consultant actuaries at Milliman, discuss the areas where extra detail might be necessary


The Preparatory Guidelines for the Forward Looking Assessment of Own Risks (Flaor) – the pre-cursor to the Own Risk and Solvency Assessment (Orsa) – require companies to assess during 2015 whether their risk profile deviates from the assumptions underlying the Solvency II solvency capital requirement (SCR) calculation, and whether these deviations are significant.

This requirement applies to both standard formula and internal model companies. However, the internal model requirements of Solvency

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

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 individual account here