SLT health underwriting risk sub-module
Article 151
1. The SLT health underwriting risk module shall consist of all of the following sub-modules: (a) the health mortality risk sub-module; (b) the health longevity risk sub-module; (c) the health disability-morbidity risk sub-module; (d) the health expense risk sub-module; (e) the health revision risk sub-module; (f) the SLT health lapse risk sub-module. 2. The capital requirement for SLT health underwriting risk shall be equal to the following: where: (a) the sum denotes all possible combinations ( i , j ) of the sub-modules set out in paragraph 1; (b) CorrSLTH (i,j) denotes the correlation parameter for SLT health underwriting risk for sub-modules i and j ; (c) SCR i and SCR j denote the capital requirements for risk sub-module i and j respectively. 3. The correlation coefficient CorrSLTH (i,j) referred to in paragraph 2 shall be equal to the item set out in row i and in column j of the following correlation matrix: j i Health mortality Health longevity Health disability-morbidity Health expense Health revision SLT health lapse Health mortality 1 – 0,25 0,25 0,25 0 0 Health longevity – 0,25 1 0 0,25 0,25 0,25 Health disability-morbidity 0,25 0 1 0,5 0 0 Health expense 0,25 0,25 0,5 1 0,5 0,5 Health revision 0 0,25 0 0,5 1 0 SLT health lapse 0 0,25 0 0,5 0 1