TITLE I VALUATION AND RISK-BASED CAPTAL REQUIREMENTS (PILLAR I), ENHANCED GOVERNANCE (PILLAR II) AND INCREASED TRANPARENCY (PILLAR III)

CHAPTER V SOLVENCY CAPITAL REQUIREMENT STANDARD FORMULA

SECTION 1 General provisions

Subsection 6 Proportionality and simplifications

Article 98 Simplified calculation of the capital requirement for health longevity risk

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

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.