Market Consistent Embedded Value (MCEV) is essentially a tightening up of the of previous embedded value rules such as EEV in order to improve inter-company comparisons.
The need for MCEV is a result of the failure of EEV to deliver what it intended. One of the problems with EEV is that it gives insurers too much discretion. This is a fault shared with many standards that were devised in the same era, such as Basle 2, and some aspects of IFRS fair value.
The EU's rules on solvency, ”solvency II“ also require the use of complex models.