The rule in plain words
The diversification effects reported in IR.26.04.01.01 -Solvency Capital Requirement - Health underwriting risk should be equal to the difference between the nSCR for SLT health underwriting risk and the sum of the capital charges for health mortality risk, health longevity risk, health disability-morbidity risk, SLT health lapse risk, health expense risk and health revision risk
The headline gives only the template and the kind of check, because the rule is too long to say in a headline. The plain words above say all of it.
This is a blocking check. A return that fails it is normally rejected, so fix it before you submit. It runs only when your filing indicators mark IR.26.04 as reported.
The cells it reads
Solvency capital requirement - health underwriting risk - SLT health underwriting risk (IR.26.04.01.01)
Rows
- R0100Health mortality risk
- R0200Health longevity risk
- R0300Health disability-morbidity risk
- R0400SLT health lapse risk
- R0500Health expense risk
- R0600Health revision risk
- R0700Diversification within SLT health underwriting risk
- R0800Total SLT health underwriting risk
Columns
- C0060Net solvency capital requirement
- C0080Gross solvency capital requirement
Which returns it applies to
Line4 Check runs it on annual solo (ARS) return on Bank of England taxonomy 2.2.0. The Bank of England applies it to annual solo (ARS) returns, as a blocking check.
The Bank’s own words and formula
The plain words above are the Bank of England’s own, word for word, from its list of validations.
Show the formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
{t: IR.26.04.01.01, r: R0700, z: Z0001} = {t: IR.26.04.01.01, r: R0800, z: Z0001} - sum({t: IR.26.04.01.01, r: R0100; R0200; R0300; R0400; R0500; R0600, z: Z0001})Other rules on Solvency capital requirement - health underwriting risk (IR.26.04)
Every Solvency UK rule on IR.26.04
Checks like this one, run at the point of submission, are the first step to real-time supervision. Line4 builds SupTech software for financial regulators that runs checks like these as each return arrives.