The capital requirement for non-life underwriting risk shall be equal to the following:

${\mathrm{SCR}}_{\mathrm{non-life}}=\sqrt{\sum _{\mathrm{i,j}}{\mathrm{CorrNL}}_{\left(\mathrm{i,j}\right)}\times {\mathrm{SCR}}_i\times {\mathrm{SCR}}_j}$

where:

1. (a)

   the sum covers all possible combinations (i,j) of the sub-modules set out in paragraph 1;

2. (b)

   CorrNL_(i,j) denotes the correlation parameter for non-life underwriting risk for sub-modules i and j;

3. (c)

   SCR_i and SCR_j denote the capital requirements for risk sub-module i and j respectively.

The correlation parameter CorrNL_(i,j) referred to in paragraph 2 denotes the item set out in row i and in column j of the following correlation matrix: