ANNEX XI
LIABILITY RISK GROUPS, RISK FACTORS AND CORRELATION COEFFICIENTS FOR THE LIABILITY RISK SUB-MODULE
i | Liability risk group i | Risk factor f(liability,i) |
1 | Professional malpractice liability insurance and proportional reinsurance obligations other than professional malpractice liability insurance and reinsurance for self-employed craftspersons or artisans | 100 % |
2 | Employers liability insurance and proportional reinsurance obligations | 160 % |
3 | Directors and officers liability insurance and proportional reinsurance obligations | 160 % |
4 | Liability insurance and reinsurance obligations included in lines of business 8 and 20 as set out in Annex I, other than obligations included in liability risk groups 1 to 3 and other than personal liability insurance and proportional reinsurance and other than professional malpractice liability insurance and reinsurance for self-employed craftspersons or artisans | 100 % |
5 | Non-proportional reinsurance of obligations relating to insurance obligations included in line of business 8 as set out in Annex I | 210 % |
For the purpose of the above table, the following definitions shall apply:
(a) | Professional malpractice liability insurance obligations mean liability insurance obligations included in line of business 8 as set out in Annex I which cover liabilities arising out of professional practice in relation to clients and patients; |
(b) | Employers liability insurance obligations mean liability insurance obligations included in line of business 8 as set out in Annex I which cover liabilities of employers arising out of death, illness, accident, disability or infirmity of an employee in the course of the employment; |
(c) | Directors and officers insurance obligations mean liability insurance obligations included in line of business 8 as set out in Annex I which cover liabilities of directors and officers of a company, arising out of the management of that company, or losses of the company itself to the extent it indemnifies its directors and officers in relation to such liabilities. |
(d) | Personal liability insurance obligations mean liability insurance obligations included in line of business 8 as set out in Annex I which cover liabilities of natural persons in their capacity of private householders. |
LIABILITY RISK CORRELATION COEFFICIENTS
j i | 1 | 2 | 3 | 4 | 5 |
1 | 1 | 0 | 0,5 | 0,25 | 0,5 |
2 | 0 | 1 | 0 | 0,25 | 0,5 |
3 | 0,5 | 0 | 1 | 0,25 | 0,5 |
4 | 0,25 | 0,25 | 0,25 | 1 | 0,5 |
5 | 0,5 | 0,5 | 0,5 | 0,5 | 1 |