Solvency II work ups pace in 2009

UK insurance firms will have until June 2009 to tell the Financial Services Authority (FSA) whether they are intending to use an internal model to calculate their capital requirements under impending Solvency II rules. Under the framework directive proposals for Solvency II, insurers will have to seek approval from local regulators if they want to use their own models for the Solvency Capital Requirement (SCR) calculation rather than the standard formula.