Judging the appropriateness of the Standard Formula under Solvency II
21 June 2017
Judging the appropriateness of the Standard Formula under Solvency II
The Standard Formula (SF) aims to capture the risk that an average European (re)insurance company is exposed to. The SF may not be appropriate for all (re)insurance companies, but the majority of European insurers currently uses it. This article provides a short overview of the structure of the SF, presents a suggested framework and worked examples, and discusses challenges and pitfalls to be considered.