Korn, RalfRalfKornStahl, GerhardGerhardStahl2024-03-262024-03-262024https://publica.fraunhofer.de/handle/publica/46451910.1007/s13385-023-00374-02-s2.0-85180248606We consider an empirical backtesting for the Solvency Capital Required (SCR) under Solvency II. Based on empirical facts that the Basic own Funds (BoF) can be assumed to evolve log-normally and have a much lower volatility than the corresponding equity for our test data, we make a proposal based on Earnings at Risk (EaR) that can be used to reduce the biases from overshooting SCR estimates in a prudential way.enBacktestingCapital requirementSolvency IIjournal article