SCR - intangible assets module

Discussion in 'SA2' started by Mbotha, Apr 21, 2017.

  1. Mbotha

    Mbotha Member

    The SCR calculation only goes into details for the insurance, market and default risk modules. Can I assume that the calculation for the intangible assets module is similar to that for insurance and market risk?
     
  2. Lindsay Smitherman

    Lindsay Smitherman ActEd Tutor Staff Member

    Yes, similar: we need to consider the risk that the value of the intangible asset decreases and then hold enough capital to cover that shortfall at the required confidence level. I believe that the SCR component for the intangible assets module within the standard formula is just a given % of the value of the intangible assets, but you don't need to know this for the exam as it is not specified in the Core Reading.
     
  3. Mbotha

    Mbotha Member

    Ok, thanks Lindsay.
     

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