RegAlert2016-04-25 | NBB_2016_17Added
Circular NBB_2016_17 / Circular on the application of the 'life underwriting risk' module in the calculation of the Solvency Capital Requirement under the standard formula
The circular specifies the application of shocks to mortality, longevity, and disability-morbidity rates when calculating the Solvency Capital Requirement under the standard formula for Belgian insurance and reinsurance undertakings. It mandates that companies apply upward shocks to mortality and disability-morbidity incidence rates and downward shocks to disability-morbidity recovery rates, ensuring post-shock rate values do not exceed 1. For contracts with multiple health states, transition rates to worse states are treated as disability-morbidity rates and those to better states as recovery rates, with only persistence rates adjusted to ensure the sum of transition rates remains 1. These orientations apply from 23 March 2016.
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NBB_2016_17 – 25 April 2016 Circular – Page 1/3 14 Berlaimont Boulevard – BE-1000 Brussels tel. +32 2 221 38 12 – fax +32 2 221 31 04 company number: 0203.201.340 Brussels RPM www.bnb.be
Circular
Brussels, 25 April 2016
Reference: NBB_2016_17
Your contact:
Kajal Vandenput tel. +32 2 221 51 77 – fax +32 2 221 31 04 Kajal.vandenput@nbb.be
Circular on the orientations regarding the application of the 'life underwriting risk' module in the calculation of the solvency capital requirement under the standard formula
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Lineage: In force
Source: National Bank of Belgium — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works