100 UK insurers prepare for internal models

Almost 100 UK insurers are planning to use their own internal model to calculate capital requirements under the Solvency II directive. The Financial Services Authority wrote to 460 insurers to assess how many intended to use internal models, rather than the standard formula, and 99 – 63 non-life and 28 life companies – said they intend to apply to the FSA for authorization to use the model in time for the launch of Solvency II in 2012.