1.The natural catastrophe risk sub-module shall consist of all of the following sub-modules:
(a)
the windstorm risk sub-module;
(b)
the earthquake risk sub-module;
(c)
the flood risk sub-module;
(d)
the hail risk sub-module;
(e)
the subsidence risk sub-module.
2.The capital requirement for natural catastrophe risk shall be equal to the following:
\mathrm{SCR}_{\mathrm{natCAT}} = \sqrt{\sum_{\mathrm{i}} \mathrm{SCR}_{\mathrm{i}}^2}
where:
(a)
the sum includes all possible combinations of the sub-modules i set out in paragraph 1;
(b)
SCRi denotes the capital requirement for sub-module i.