THE EUROPEAN SOLVENCY II capital requirement is, as we know, based on a two-level system,namely an SCR and an MCR. The MCR could be articulated as a measure based on a time horizon and a probability

of ruin at which the risks to new policyholders would be unacceptable, even on the short term or the point at which it ceases to be economically rational for the undertaking to be recapitalized to the level of the SCR.