Treasury reveals impact of SCR choice

Non-life insurance firms in the UK could see their capital requirements under Solvency II rise by over half if they choose to use the standard solvency capital requirement (SCR) rather than develop their own internal model. In a partial impact statement from HM Treasury, non-life firms will have to find £16.3m in additional capital – a jump of 66% - to fund the difference between existing ICAS requirements and the transition to Solvency II.