Non-Life Premium & Reserve Risk Captive Simplification

Calculate the Captive Premium & Reserve Risk Capital Requirement instantly.

Segment	Premium Volume Measure	Reserve Volume Measure	Segment Capital
Motor Vehicle Liability	Motor Vehicle Liability premium volume measure€	Motor Vehicle Liability reserve volume measure€	€624
Other Motor	Other Motor premium volume measure€	Other Motor reserve volume measure€	€0
Marine, Aviation and Transport	Marine, Aviation and Transport premium volume measure€	Marine, Aviation and Transport reserve volume measure€	€0
Fire and Property	Fire and Property premium volume measure€	Fire and Property reserve volume measure€	€0
General Liability	General Liability premium volume measure€	General Liability reserve volume measure€	€0
Credit and Suretyship	Credit and Suretyship premium volume measure€	Credit and Suretyship reserve volume measure€	€0
Legal Expenses	Legal Expenses premium volume measure€	Legal Expenses reserve volume measure€	€0
Assistance	Assistance premium volume measure€	Assistance reserve volume measure€	€0
Miscellaneous Financial Loss	Miscellaneous Financial Loss premium volume measure€	Miscellaneous Financial Loss reserve volume measure€	€0
Non-Proportional Casualty	Non-Proportional Casualty premium volume measure€	Non-Proportional Casualty reserve volume measure€	€0
Non-Proportional MAT	Non-Proportional MAT premium volume measure€	Non-Proportional MAT reserve volume measure€	€0
Non-Proportional Property	Non-Proportional Property premium volume measure€	Non-Proportional Property reserve volume measure€	€0

Sum of Segment Capitals

€624

Segment 1-12 Capital Total

€624

Square-Root Combination Term

€624

Quadratic Equivalent Capital

€503

RSS

Linear Equivalent Capital

€369

Captive Premium & Reserve Risk

€624

Square-Root Combination Term

€624

1Step 1

Calculate each segment capital from premium and reserve volume measures

SCR_s=0.6\sqrt{V_{prem,s}^2+V_{prem,s}V_{res,s}+V_{res,s}^2}

2Step 2

Combine segment capital using the captive simplification square and linear terms

SCR=\sqrt{0.65\sum SCR_s^2+0.35(\sum SCR_s)^2}

Understand the Non-Life Premium & Reserve Risk Captive Simplification

Overview

This calculator implements the captive simplification for Non-Life Premium & Reserve Risk within the Solvency II standard formula.^[1] It applies the Article 90 simplification using segment premium and reserve volume measures.

Input Terms

Segment Premium Volume Measure (V<sub>prem,s</sub>): The premium risk volume measure for each non-life segment, calculated under Article 116 and used in the Article 90 captive simplification.^[1]^[2]
Segment Reserve Volume Measure (V<sub>res,s</sub>): The reserve risk volume measure for each non-life segment, calculated under Article 116 and used in the Article 90 captive simplification.^[1]^[2]

Technical Rationale

Article 90 permits captive insurance and reinsurance undertakings meeting the relevant conditions to calculate non-life premium and reserve risk with a simplified segment formula based on Article 116 volume measures.^[1]^[2]

Important Notes

Captive scope: This simplification is designed for captive insurance and captive reinsurance undertakings where the Article 90 conditions are met.^[1]
Gross vs. Net SCR: This simplification estimates the standalone Non-Life Premium & Reserve 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 the standard-formula assumptions or from the conditions supporting this simplification may support a capital add-on or a move toward a fuller or internal-model approach where justified.^[3]
Reporting: The simplified result is intended to support the corresponding standard-formula component for the S.25.01.01 standard-formula reporting view, not to replace the full article-based result where the simplification is not justified.^[4]

Sources

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.