Article 151
SLT health underwriting risk sub-module
1.
The SLT health underwriting risk module shall consist of all of the following sub-modules:
(a)
the health mortality risk sub-module;
(b)
the health longevity risk sub-module;
(c)
the health disability-morbidity risk sub-module;
(d)
the health expense risk sub-module;
(e)
the health revision risk sub-module;
(f)
the SLT health lapse risk sub-module.
2.
The capital requirement for SLT health underwriting risk shall be equal to the following:
where:
(a)
the sum denotes all possible combinations (i,j) of the sub-modules set out in paragraph 1;
(b)
CorrSLTH(i,j) denotes the correlation parameter for SLT 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 CorrSLTH(i,j) referred to in paragraph 2 shall be equal to the item set out in row i and in column j of the following correlation matrix:
|
j i |
Health mortality |
Health longevity |
Health disability-morbidity |
Health expense |
Health revision |
SLT health lapse |
|
Health mortality |
1 |
– 0,25 |
0,25 |
0,25 |
0 |
0 |
|
Health longevity |
– 0,25 |
1 |
0 |
0,25 |
0,25 |
0,25 |
|
Health disability-morbidity |
0,25 |
0 |
1 |
0,5 |
0 |
0 |
|
Health expense |
0,25 |
0,25 |
0,5 |
1 |
0,5 |
0,5 |
|
Health revision |
0 |
0,25 |
0 |
0,5 |
1 |
0 |
|
SLT health lapse |
0 |
0,25 |
0 |
0,5 |
0 |
1 |