MCR – Minimum Capital Requirement

The concept of the MCR (Minium Capital Requirement) is rather straightforward. Under the Solvency II regime it is the minimum capital requirement for an insurance company to write business. If the SCR (Solvency Capital Requirement) is breached it is a serious matter. If the MCR is breached it is even worse. Find out how it is calculated below. Calculation The calculation of the MCR follows 5 steps. 1)  Calculate the…

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Quantitative Reporting Templates

Since implementation of Solvency II on 1 January 2016 insurance companies (in the wider sense) should report QRTs (Quantitative Reporting Templates) quarterly to their supervisor. Some of templates only has to reported yearly. The main templates are: S.02  Balance sheet S.23  Own Funds S.25  SCR S.28  MCR S.12/S.17  Technical Provisions The templates are available here, and through several software programs. Detailed rules are available in the Commission Implementing Regulation, please…

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