The Standard Formula: A Guide to Solvency II

Skadden Publication

Our Guide to Solvency II features an in-depth look at the EU’s prudential regime for insurance and reinsurance undertakings. New chapters will post monthly.

Chapter 1: Own Funds
We are excited to announce the launch of our Guide to Solvency II, set to be released chapter by chapter each month. Our first chapter covers own funds, which constitute an insurer's regulatory capital.

Chapter 2: Reinsurance and Risk Transfer
Chapter 2 details the various components involved in the transfer of risk from an insurer to a reinsurer.

Chapter 3: Cross-Border Services and Overseas Branches
Chapter 3 discusses the provision of insurance and reinsurance from one jurisdiction into another, and the applicable regimes in place in the EEA and UK.

Chapter 4: Groups
Chapter 4 delivers a detailed analysis of the rules on insurance group supervision under the UK’s Solvency II. Topics include group types, applicable rules and considerations, solvency calculations and internal models.

Chapter 5: The Matching Adjustment
Chapter 5 of our guide delivers a detailed analysis of the rules on the matching adjustment under the UK’s Solvency II, which allow discounting of certain long-term liabilities at a higher rate in prescribed circumstances.

Chapter 6: Investment Rules
Chapter 6 of our guide delivers a detailed look at the investment rules that apply to Solvency II insurers and reinsurers in the United Kingdom.

Chapter 7: Technical Provisions
Chapter 7 of our guide answers questions that insurers may have and describes how technical provisions are determined, including what we can expect from the U.K.’s recent reforms.

Chapter 8: Capital Requirements
In this chapter, we examine the Solvency Capital Requirement under Solvency II, which is designed to ensure policyholders are properly covered by insurers during times of hardship, with a detailed focus on the standard formula method for the calculation.