Solvency Capital Requirement (SCR)

The Standard Formula calculation should be based on the following considerations:◦The UK is no longer a Member State ◦The UK is no longer a member of the EEA ◦The UK remains a member of the OECD ◦Status of the UK rating agencies: please see below  In accordance with Article 4(1) of the Delegated Regulation insurers may use an external credit assessment for the calculation of the Solvency Capital Requirement in accordance with the standard formula only where it has been issued by an External Credit Assessment Institution (ECAI) or endorsed by an ECAI in accordance with Regulation (EC) No 1060/2009. As set out in Regulation (EC) No 1060/2009, a credit rating agency located in the UK (i.e. outside the Union) cannot be recognised as an ECAI. If an insurer wants to use the credit rating issued by this credit rating agency, it has to check that the credit rating was endorsed by an ECAI. If the criteria in Article 4(1) are met, the mapping to Credit Quality Steps should be performed in accordance with Implementing Regulation (EU) 2016/1800.