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Article 120 - Natural catastrophe risk sub-module

Article 120
Natural catastrophe risk sub-module

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.

Official text · consolidated version 08/07/2019 (no longer in force) Open full page ↗
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