Real-world Modelling for Solvency II SCR Internal Models: ‘Point-in-Time’ v ‘Through-the-Cycle’

In this Insights we discuss the aim of our real-world projection: are we aiming to generate a forward-looking projection relevant to the coming year, or a projection that represents a typical year? This decision can have a significant impact on the size of the SCR and also the viability of any hedging and risk management strategies