Prudential Regulation Authority Rulebook

1.

A firm must calculate the capital requirement for health disability-morbidity risk as the sum of the following:

1. (1) the capital requirement for medical expense disability-morbidity risk; and
2. (2) the capital requirement for income protection disability-morbidity risk. 

2.

A firm must apply:

1. (1) the scenarios underlying the calculation of the capital requirement for medical expense disability-morbidity risk only to medical expense insurance obligations and medical expense reinsurance obligations where the underlying business is pursued on a similar technical basis to that of life insurance; and
2. (2) the scenarios underlying the calculation of the capital requirement for income protection disability-morbidity risk only to income protection insurance obligations and income protection reinsurance obligations where the underlying business is pursued on a similar technical basis to that of life insurance.