Non-Life Motor Vehicle Liability Risk

Overview

This calculator implements the Motor Vehicle Liability Risk capital requirement in the man-made catastrophe risk module.^[1]

Input Terms

• High-Limit Weighted Vehicles: Weighted vehicle count for the high-limit Article 129 motor vehicle liability basis.^[1]
• Other Weighted Vehicles: Weighted vehicle count for the remaining Article 129 motor vehicle liability basis.^[1]

Technical Rationale

Article 129 uses a floor and a non-linear vehicle-count basis because motor vehicle liability catastrophe risk is driven by severe multi-vehicle events, not by ordinary premium volume. The high-limit and other-vehicle split recognizes that large insured limits can change the severity of the tail event.

The minimum absolute amount prevents very small vehicle counts from eliminating the catastrophe capital requirement where the standard formula still presumes a severe motor liability event.

Important Notes

• Gross vs. Net SCR: This calculator determines the standalone Non-Life Motor Vehicle Liability Risk SCR. Solvency II risk is only finalized as a net impact on Basic Own Funds after diversification in Non-Life Risk, then within BSCR, and after the top-level LAC TP and LAC DT adjustments.
• Regulatory deviation: Material deviation from standard-formula assumptions at this layer may support a capital add-on or a move toward an internal model where justified.^[2]
• Reporting: The displayed result is intended to support the corresponding standard-formula component for the S.25.01.01 standard-formula reporting view.^[3]