Solvency II SCR in SAP Analytics Cloud: modelling, monitoring and reporting the capital requirement

If you're searching for "Solvency II SCR software", you're really asking two different questions: what calculates the SCR, and what monitors and reports it. They usually aren't the same tool. This is where SAP Analytics Cloud fits — and, just as importantly, where it doesn't.

Where the SCR is actually calculated

The Solvency Capital Requirement is computed either with the standard formula or an approved internal model. The standard formula aggregates risk modules defined in the Solvency II Delegated Regulation — market risk, life / non-life / health underwriting, counterparty default and operational risk — combining them through prescribed correlation matrices into the Basic SCR, then applying adjustments (loss-absorbing capacity of deferred taxes and technical provisions) to reach the SCR. That calculation typically lives in dedicated actuarial software or governed spreadsheets. SAP Analytics Cloud is not a black-box SCR engine, and treating any BI/planning tool as one would be a mistake.

Where SAP Analytics Cloud does fit

SAC is the layer around the calculation: it takes the SCR results — by risk module, by entity, by reporting period — and makes them governed, versioned, board-ready and easy to stress. Concretely, SAC is strong for:

— Structuring the SCR and own funds as a multidimensional model (risk module × entity × period × version), so the numbers have one consistent home rather than scattered spreadsheets.
— Monitoring the solvency ratio (eligible own funds ÷ SCR) over time and across versions — Actual, forecast, and stress or ORSA scenarios — with reference lines at 100% and your internal target.
— Reporting to management and the board, and feeding dashboards that sit alongside your QRT production rather than replacing it.

What a good SAC SCR model looks like

A workable structure usually has dimensions for risk module (market, underwriting, counterparty, operational), entity, period, and a version/scenario dimension for Actual vs forecast vs stress. Measures cover SCR by module, the Basic SCR, adjustments, own funds by tier, the SCR ratio, and the MCR as a floor. The published thresholds go in as reference lines so the ratio is always read against 100% and your risk-appetite target.

The honest division of labour

SAC doesn't replace your actuarial calculation — it makes the results auditable, versioned and quick to stress-test, which is exactly what management reporting and ORSA need. If your SCR work today lives in disconnected spreadsheets, moving the reporting and monitoring layer into a governed model is usually the higher-value step, not swapping out the calculation engine.

To skip the setup on the SAC side, the template catalog includes a free Solvency II model structure, and the regulatory accelerators give a ready-to-import skeleton — the risk-module dimensions, the ratio measures and the thresholds entered as reference lines, so you configure and validate your own figures rather than starting from a blank model. For the underlying concepts, see Solvency II in SAC: SCR, MCR and the solvency ratio.

Sources: EIOPA; Solvency II Delegated Regulation (EU) 2015/35 (SCR standard formula and modules). This is general information, not actuarial or regulatory advice — figures and structures must be validated by your own actuarial function.