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MCR Absolute Floor

MCR

Calculate the MCR Absolute Floor instantly.

Type of Insurer

MCR Absolute Floor

€4 000 000

1Step 1

MCR Absolute Floor

MCR Absolute Floor={2700000if Type of Insurer=14000000if Type of Insurer=24000000if Type of Insurer=33900000if Type of Insurer=41300000if Type of Insurer=5\textit{MCR Absolute Floor} = \begin{cases} 2700000 & \text{if } \textit{Type of Insurer} = 1 \\ 4000000 & \text{if } \textit{Type of Insurer} = 2 \\ 4000000 & \text{if } \textit{Type of Insurer} = 3 \\ 3900000 & \text{if } \textit{Type of Insurer} = 4 \\ 1300000 & \text{if } \textit{Type of Insurer} = 5 \end{cases}
Understand the MCR Absolute Floor

Overview

This calculator returns the statutory absolute floor used in the final MCR comparison.[1][2] It is a categorical rule based on insurer type rather than a risk-sensitive formula.[2]

Use it when the legal undertaking type is known and you need the floor amount that will be compared against combined MCR.

Input Terms

  • Type of Insurer: Encoded undertaking type used to select the statutory absolute-floor amount.

Calculation

The route maps the visible insurer-type code to the corresponding statutory minimum amount.

  • `1` = Non-Life excluding classes `10-15` -> `2700000`.
  • `2` = Non-Life including classes `10-15` -> `4000000`.
  • `3` = Life -> `4000000`.
  • `4` = Reinsurance -> `3900000`.
  • `5` = Captive Reinsurance -> `1300000`.
  • The selected amount is returned as Minimum Capital Requirement Absolute Floor.[[ref: delegated-2015-35-art-253]]

Important Notes

  • The page depends entirely on the legal insurer classification. If the type code is wrong, the floor will be wrong even when every other MCR input is correct.
  • The absolute floor does not scale with SCR, own funds, or business volume on this route. It changes only when the insurer type changes or the regulatory table changes.
  • This result becomes legally relevant only after it is compared with Combined MCR on Final MCR.

Sources

  1. Directive 2009/138/EC - Art. 129 (Calculation of the Minimum Capital Requirement) - EIOPA
  2. Delegated Regulation (EU) 2015/35 - Art. 253 (Absolute floor of the Minimum Capital Requirement) - EUR-Lex

Solvency II - Pillar 1, Minimum Capital Requirement. Default values are illustrative sample inputs for navigation, training, and QA. Replace them with controlled data before using the result in capital analysis, governance, or reporting decisions.