Q&A

Question

In the document « Taxonomical business validations », in the validation rule « Annex II Logs - S.26.04:A26 + Errata », "Diversification within health underwriting risk module" is written to be equal to:  

Diversification within health underwriting risk module (Net) =

+ Total capital requirement for health underwriting risk (Net) (A27)

- Total capital requirement for SLT health underwriting risk (D10)

- Total NSLT health lapse risk (D20)

- Total capital requirement for health catastrophe risk (A25)



Could you explain why you don’t subtract the “NSLT Health premium and reserve risk” too?

EIOPA answer

The cell D20 (new C0240/R1400) does not correspond to “Total NSLT health lapse risk” as indicated in the question but to “Total NSLT health underwriting risk” which is the sum of “NSLT Health premium and reserve risk” with “NSLT Health lapse risk”. The formula is correct.