Commission Delegated Regulation (EU) 2015/35Show full title

Article 148 U.K. Standard deviation for NSLT health premium and reserve risk

1. The standard deviation for NSLT health premium and reserve risk shall be equal to the following:

where:

(a)

V_NSLTh denotes the volume measure for NSLT health premium and reserve risk;

(b)

the sum covers all possible combinations (s,t) of the segments set out in Annex XIV;

(c)

CorrHS_(s,t) denotes the correlation coefficient for NSLT health premium and reserve risk for segment s and segment t set out in Annex XV;

(d)

σ_s and σ_t denote standard deviations for NSLT health premium and reserve risk of segments s and t respectively;

(e)

V_s and V_t denote volume measures for premium and reserve risk of segments s and t, referred to in Annex XIV, respectively.

2. For all segments set out in Annex XIV, the standard deviation for NSLT health premium and reserve risk of a particular segment s shall be equal to the following:

where:

(a)

σ_(prem,s) denotes the standard deviation for NSLT health premium risk of segment s determined in accordance with paragraph 3;

(b)

σ_(res,s) denotes the standard deviation for NSLT health reserve risk of segment s as set out in Annex XIV;

(c)

V_(prem,s) denotes the volume measure for premium risk of segment s referred to in Article 147;

(d)

V_(res,s) denotes the volume measure for reserve risk of segment s referred to in Article 147.

3. For all segments set out in Annex XIV, the standard deviation for NSLT health premium risk of a particular segment shall be equal to the product of the standard deviation for NSLT health gross premium risk of the segment set out in Annex XIV and the adjustment factor for non-proportional reinsurance. For all segments set out in Annex XIV the adjustment factor for non-proportional reinsurance shall be equal to 100 %.