The Solvency II standard model is nearing completion. Quantitative Impact Study Draft 4 (QIS 4) was released on April 1, 2008 and will run through July 2008. In QIS 4, the non-life catastrophe risk capital component of the solvency capital requirement (SCR) calculation has been modified substantially from QIS 3 and has become more complex. In particular, QIS 4 includes a personalized catastrophe scenario capital calculation option, improving the risk sensitivity of the standard model relative to a specific carrier. This approach can provide a competitive advantage through the use of model results for internal management purposes and the compliance process.
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