SCR | solvency capital requirement
SAINMHÍNIÚ economic capital to be held by insurance and reinsurance undertakings in order to ensure that ruin occurs no more often than once in every 200 cases, or, alternatively, that those undertakings will still be in a position, with a probability of at least 99.5%, to meet their obligations to policy holders and beneficiaries over the following 12 months TAGAIRT Directive 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II), recital (64), CELEX:32009L0138/EN
NÓTA The Solvency Capital Requirement shall be calibrated so as to ensure that all quantifiable risks to which an insurance or reinsurance undertaking is exposed are taken into account. It shall correspond to the Value-at-Risk of the basic own funds of an insurance or reinsurance undertaking subject to a confidence level of 99.5 % over a one-year period. The Solvency Capital Requirement shall cover at least the following risks: non-life underwriting risk, life underwriting risk, health underwriting risk, market risk, credit risk and operational risk.