The new Solvency UK template S.25.04 provides detailed insights into the Solvency Capital Requirement (SCR) of UK insurers.
Reported this year for the first time, the template mandates detailing the submodules of each of the Solvency UK SCR, something which under Solvency II was only required by firms that use a partial or full internal model to calculate the SCR.
The chart below shows the distribution of the Life SCR module components of 40 UK life insurance firms.
What are the components of the Solvency UK Life SCR?
The Life SCR module includes the following components:
- Mortality risk
- Longevity risk
- Disability-Morbidity risk
- Life-expense risk
- Revision risk
- Lapse risk
- Life catastrophe risk
- Other life underwriting risk
- Diversification within life underwriting risk
Can you map the Solvency UK life SCR components to pre Solvency UK data?
Several UK insurers that use an internal model or partial internal model under Solvency II have published details of their life and other SCR components.
The chart below shows the number of UK insurers that previously published SCR component data.
This shows that it is possible to map the SCR components for those firms that have provided such detailed data under Solvency II.
Weekly Lunchtime Webinar: 2024 SFCRs weekly reporting update
Wednesday 16 & 23 April 2025, 12.00 UK / 13.00 CET
A weekly update on the state of the Solvency II and Solvency UK 2024 SFCR reports, including early market analysis from Solvency II Wire Data.
