Prudential Regulation Authority Rulebook

1.

A firm must calculate the capital requirement for the health catastrophe risk sub-module in accordance with the following formula:

$${SCR}_{healthCAT}=\sqrt{{SCR}_{ma}^2+{SCR}_{ac}^2+{SCR}_p^2}$$

where:

1. (1) SCR_ma denotes the capital requirement for the mass accident risk sub-module;
2. (2) SCR_ac denotes the capital requirement for the accident concentration risk sub-module; and
3. (3) SCR_p denotes the capital requirement for the pandemic risk sub-module.

2.

1. (1) the mass accident risk sub-module to health insurance obligations and health reinsurance obligations other than workers’ compensation insurance obligations and workers’ compensation reinsurance obligations;
2. (2) the accident concentration risk sub-module to workers’ compensation insurance obligations and workers’ compensation reinsurance obligations and to group income protection insurance obligations and group income protection reinsurance obligations; and
3. (3) the pandemic risk sub-module to health insurance obligations and health reinsurance obligations other than workers’ compensation insurance obligations and workers’ compensation reinsurance obligations.