I think ICA could be described as only a part of the economic capital which needs to be held in order to withstand extreme shocks over one-year period with 99.5% confidence or equivalent measure over a longer time period. However, the FSA can issue ICG if it feels that the ICA capital which an insurer is holding is insufficient. This will be regulatory capital in relation to extreme shocks so will also only form a part of the insurer's total available capital. Under Solvency II, there is SCR which is similar to ICA. Pillar 2 also requires capital to be held by undertaking ORSA. There is a question either in 2010 or 2011 past exam paper in which the difference between ICA and Solvency II was asked. I would recommend that.
