Question
Difference between Annotated Template and spécifications (31 april 2014) concerning Man-Made cat risk MARINE formula :
QIS page 281 SCR 9.114 : SCR_MARINE=root of(SCR_PLATFORME^2+SCR_TANKER^2)
S2701 HA5 : SCR_MARINE=SCR_PLATFORME+SCR_TANKER.
Which formula is relevant ?
EIOPA answer
Please note that the Commission’s Delegated Act containing implementing rules for Solvency II have been published (Commission Delegated Regulation 2015/35) and therefore this should be the relevant source to use.
In this case article 130 which specifies that the capital requirement for marine risk shall be equal to the following: SCRmarine = root of(SCR_TANKER^2+SCR_PLATFORME^2)
where: SCRtanker is the capital requirement for the risk of a tanker collision and SCRplatform is the capital requirement for the risk of a platform explosion.