Operational Risk and Loss Absorbing Capacity

Policies relating to the calculation of Operational Risk and Loss Absorbency Capacity underwriting risk as part of the Standard Formula Solvency Capital Requirement for Solvency 2 insurers.

PRA Rules

UK legislation

  • Solvency Capital Requirement Standard Formula - Operational Risk - Commission Delegated Regulation (EU) 2015/35 (Title I, Chapter V, Sections 1, and 8)
  • Solvency Capital Requirement Standard Formula - Loss Absorbing Capacity - Commission Delegated Regulation (EU) 2015/35 (Title I, Chapter V, Section 9)

Supervisory Statements

  • Solvency II: recognition of deferred tax (SS2/14)

Other relevant material

Guidelines originally issued by European Supervisory Authorities should be read in conjunction with "Interpretation of EU Guidelines and Recommendations: Bank of England and PRA approach after the UK’s withdrawal from the EU" (Statement of Policy)

This page was last updated 31 January 2023