We support companies to submit the application for approval of the use of specific parameters in order to replace a subset of parameters (using the Standard Formula) to the supervisory authority.

In this application, we demonstrate that we are compliant with the following conditions:

  • The calibration of the standard formula parameters does not appropriately reflect their risk profile and the use of USPs leads to a more appropriate result
  • The data used to calibrate the USPs are complete, accurate and appropriate
  • The USPs cannot be used to ‘cherry-pick’ those areas which give the lowest SCR
  • The risks covered by the USPs are conceptually the same as those covered by the standard formula parameters
  • The underlying assumptions behind the standard formula parameter calibration and behind the USP are the same

The standard methodology provided should enable a robust and reliable estimation of the USP