Solvency capital requirement (SCR) is the capital demanded by the national supervisor (within the EU) to ensure that insurance companies can meet their liabilities over the next 12 months with a probability of at least 99.5%. Currently, calculating the Solvency capital requirement is one of the main tasks of the risk control department in the insurance companies.

The SCR is based on a Value-at-Risk measure to a confidence level of 99.5% over a 1-year time horizon.