Simplified calculation of the capital requirement for life longevity risk

Where Article 88 is complied with, insurance and reinsurance undertakings may calculate the capital requirement for life longevity risk calculated as follows:

SCR longevity= 0,2* q* n * 1,1^(n-1)/2 *BE long

where, with respect to the policies referred to in Article 138(2):

(a)  q denotes the expected average mortality rate of the insured persons during the following 12 months weighted by the sum insured;

(b) n denotes the modified duration in years of the payments to beneficiaries included in the best estimate;

(c) BE long denotes the best estimate of the obligations subject to longevity risk.