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Fit to size

The one-size-fits-all approach of Solvency II's standard formula has left insurers with a dilemma. Should they use a standard model that is not appropriate to their business strategy, or opt for an internal model that is expensive and time-consuming for small players? Andrew Sheen reports

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What is right for one may not be right for many. With the focus of Solvency II shifting to the implementation stage, it has become apparent that when it comes to models one size does not fit all. And while there are both the ready-to-wear standard and bespoke internal options available, there are some operations for which neither is a perfect fit.

Although the standard formula is designed to be

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