PIN A6.2.2

Subject to Rules A6.2.4, A6.2.5, and A6.2.6, an Insurer must calculate its Minimum Segmental Capital Requirement according to the formula:

MSCR = DRC + IVRC + OARC + OLRC + CRC + SFAC + URC + RRC + LIRC + AMRC

where:

Term Definition
MSCR Insurer's Minimum Segmental Capital Requirement;
DRC Insurer's default risk component in respect of that segment;
IVRC Insurer's investment volatility risk component in respect of that segment;
OARC Insurer's off-balance sheet asset risk component in respect of that segment;
OLRC Insurer's off-balance sheet liability risk component in respect of that segment;
CRC Insurer's concentration risk component in respect of that segment;
SFAC Insurer's size factor adjustment component in respect of that segment;
URC Insurer's underwriting risk component in respect of that segment;
RRC Insurer's reserving risk component in respect of that segment;
LIRC Insurer's Long-Term Insurance risk component in respect of that segment;
AMRC Insurer's asset management risk component in respect of that segment.