Pillar1 "quantitative requirements" - capital requirements
AT Global can assist in many aspects such as determining the most appropriate method for your insurance company, guiding you with the use of the standard formula (e.g. use the standard formula with your own data to calibrate the risk parameters) and help develop, where appropriate, an internal model.
Pillar 1 "quantitative requirements" defines the capital requirements - a target level, the Solvency Capital Requirement or SCR, and a minimum level, the Minimum Capital Requirement or MCR - and the own funds eligible for coverage.
A "total balance sheet approach" is used rather than focusing only on capital requirements, to avoid having hidden surplus or deficits, for example in the technical provisions. This pillar also defines investments requirements based on the prudent person principle, rather than on quantitative limits.
The Solvency Capital Requirement of pillar 1 is determined through the use of the so-called standard formula, which is an example of risk-based capital methodology as introduced earlier or through the use of an internal model, either partial or complete.
There are many other circumstances under which the expertise of AT Global can bring a considerable added value to your company in the context of pillar 1. Another direct example is to assist you when defending your internal model towards the supervisory authorities and help you pass the six tests which are required for such a model to be approved.