Article 144
Health underwriting risk module
1.
The health underwriting risk module shall consist of all of the following sub-modules:
(a)
the NSLT health insurance underwriting risk sub-module;
(b)
the SLT health insurance underwriting risk sub-module;
(c)
the health catastrophe risk sub-module.
2.
The capital requirement for health underwriting risk shall be equal to the following:
where:
(a)
the sum covers all possible combinations (i,j) of the sub-modules set out in paragraph 1;
(b)
CorrH(i,j) denotes the correlation parameter for health underwriting risk for sub-modules i and j;
(c)
SCRi and SCRj denote the capital requirements for risk sub-module i and j respectively.
3.
The correlation coefficient CorrH(i,j) referred to in paragraph 2 denotes the item set out in row i and in column j of the following correlation matrix:
|
j i |
NSLT health underwriting |
SLT health underwriting |
Health catastrophe |
|
NSLT health underwriting |
1 |
0,5 |
0,25 |
|
SLT health underwriting |
0,5 |
1 |
0,25 |
|
Health catastrophe |
0,25 |
0,25 |
1 |
4.
Insurance and reinsurance undertakings shall apply:
(a)
the NSLT health underwriting risk sub-module to health insurance and reinsurance obligations included in lines of business 1, 2, 3, 13, 14, 15 and 25 as set out in Annex I;
(b)
the SLT health underwriting risk sub-module to health insurance and reinsurance obligations included in lines of business 29, 33 and 35 as set out in Annex I;
(c)
the health catastrophe risk sub-module to health insurance and reinsurance obligations.