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Life Revision Risk

AdvancedRequires external valuation

Calculate the Stressed Annuity Benefit Amount instantly.

€
%

Current Annuity Benefit Amount

€133 333 333

×

Annuity Benefit Stress Multiplier

103.0%

=

Stressed Annuity Benefit Amount

€137 333 333

Life Revision Benefit Increase Impact

Shock increase
Base value
ModuleShockPre-shockPost-shockCharge
Current Annuity Benefit Amount+3%€133 333 333€137 333 333€4 000 000
1Step 1

Stressed Annuity Benefit Amount

Stressed Annuity Benefit=Current Annuity Benefit×(1+Annuity Benefit Increase)\mathrm{Stressed\ Annuity\ Benefit}=\mathrm{Current\ Annuity\ Benefit}\times(1+\mathrm{Annuity\ Benefit\ Increase})

Understand the Life Revision Risk

Overview

Article 141 defines the Life Revision Risk stress for annuity benefits that can increase because of legal, medical, or inflation-related revision.[1] The prescribed permanent increase is 3% for obligations in that revision-sensitive scope.

Input Terms

  • Current Annuity Benefit Amount: The annuity benefit amount in scope for Article 141 revision risk.[1]
  • Annuity Benefit Increase: The prescribed Article 141 permanent 3% increase.[1]

Technical Rationale

Article 141 exists because some annuity benefits can be revised upward by legal, medical, or inflation-related decisions after inception.[1] The permanent benefit uplift proxies the reserve sensitivity to that external revision mechanism rather than a general expense or inflation shock.

The revised benefit amount remains separate from the valuation loss because Article 141 identifies the stressed benefit level before technical provisions and own funds are remeasured.

Important Notes

  • Revision-Sensitive Scope: This sub-module applies only to life obligations where the amount of the benefit is potentially subject to periodic revision by a court or medical authority. Fixed-annuity portfolios are typically excluded, and this page does not validate that portfolio scope.[1]
  • Portfolio-Specific Impact: For many "classic" life insurers, revision risk is and remains zero. It is typically a significant driver for undertakings with large concentrations of workers' compensation or liability-driven annuities.
  • This page specifies the stress, not the final standalone Life Revision Risk SCR.

Sources

  1. Delegated Regulation (EU) 2015/35 - Art. 141 (Revision 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.