EU supervisors set capital add-ons for 21 insurers in 2018

Twenty-one European Union insurers were subject to capital add-ons for atypical risks in 2018. In aggregate, these add-ons contributed 32% to their total solvency capital requirement (SCR). 

Solvency II rules allow national supervisors to set additional capital requirements for insurers in exceptional circumstances, like when a firm’s risk profile is out-of-sync with the assumptions of the regulator-set standard formula or their own internal models.

As of end-2018, eight national supervisors