Skip to content
Actuably

Health SLT Mass-Lapse Stress

AdvancedRequires external valuation

Calculate the Discontinued Policies instantly.

%
%

Adverse SLT Health Policy Count

5,000

×

Discontinuance Rate

40.0%

=

Discontinued Policies

2,000

Future Contracts Used in TP

500

×

1 - Future Contract Decrease Rate

60.0%

=

Future Contracts After Stress

300

Health SLT Mass-Lapse Shock Impact

Shock charge
Retained value
ModuleShockPre-shockPost-shockCharge
Adverse SLT Health Policies-40%5 0003 0002 000
Future Contracts-40%500300200
1Step 1

Discontinued Policies

Discontinued Policies=Adverse SLT Health Policies×40%\mathrm{Discontinued\ Policies}=\mathrm{Adverse\ SLT\ Health\ Policies}\times40\%
2Step 2

Future Contracts After Stress

Future Contracts After Stress=Future Contracts×(1−40%)\mathrm{Future\ Contracts\ After\ Stress}=\mathrm{Future\ Contracts}\times(1-40\%)

Understand the Health SLT Mass-Lapse Stress

Overview

Article 159 defines the SLT health mass-lapse stress through an adverse-policy discontinuance event and a future-contract decrease.[1]

Input Terms

  • Adverse SLT Health Policy Count: Policies for which discontinuance would increase technical provisions without the risk margin, after the Article 159 scope and adverse-discontinuance selection have been applied.[1]
  • Future Contracts Used in TP: Future insurance or reinsurance contracts used in technical provisions where reinsurance contracts cover business that will be written in the future.[1]

Technical Rationale

Article 159 treats SLT health mass lapse as a discontinuity event for policies where discontinuance is adverse to technical provisions.[1] Keeping the adverse-policy count explicit preserves the scope evidence before the valuation-model loss is prepared.

The future-contract decrease exists because technical provisions may include reinsurance contracts covering business still to be written. This page keeps the Article 159 count stress separate from the valuation-model loss.

Important Notes

  • This page is a count-based stress calculator. It does not convert the stressed counts into capital.
  • Input counts must already reflect the Article 159(6) scope, adverse-discontinuance test, uniform-application requirement, and per-policy worst discontinuance type.
  • Future contracts that are not relevant are represented by a zero future-contract count.

Sources

  1. Delegated Regulation (EU) 2015/35 - Art. 159 (SLT health lapse risk sub-module) - EIOPA

Default values are illustrative sample inputs for navigation, training, and QA. Replace them with controlled data before using the result in capital analysis, governance, or reporting decisions.