Health Income Protection Disability-Morbidity CAR1 / CAR2 Capital at Risk

Overview

This calculator isolates the positive capital-at-risk measure used by Article 100 for Health Income Protection Disability-Morbidity Risk simplification.^[1] It calculates one policy or homogeneous contract group before the undertaking sums those amounts into CAR₁ or CAR₂. Current valuation-date amounts correspond to CAR₁; after-12-month amounts correspond to CAR₂.

Input Terms

• CAR1 / CAR2 Death or Disability Payment Gross: The gross amount payable at the selected CAR timing in the event of death or disability of the insured persons.^[1]
• CAR1 / CAR2 EPV Future Death or Disability Payments Gross: The gross expected present value of future death- or disability-contingent amounts not covered by the selected-timing payment amount.^[1]
• CAR1 / CAR2 Best Estimate Obligations Gross: The corresponding gross best estimate obligations at the selected CAR timing.^[1]
• Reinsurance Recoverable Inputs: Advanced inputs deduct recoverables from reinsurance contracts for the payment, future payment EPV, and best estimate obligation components.^[1]
• SPV Recoverable Inputs: Advanced inputs deduct recoverables from special purpose vehicles for the same components.^[1]

Technical Rationale

Article 100 defines CAR₁ and CAR₂ as sums of positive capital-at-risk amounts. This calculator isolates the floored positive amount for one policy or homogeneous contract group; portfolio totals remain outside this article-level measure.^[1] The gross, reinsurance, and SPV split keeps the net Article 100 position traceable.

Important Notes

• The result belongs to either the current CAR₁ population or the after-12-month CAR₂ population, depending on the valuation date represented by the inputs.[[ref: delegated-2015-35-art-100]]
• This is an input measure, not a standalone SCR amount.
• Reinsurance and SPV recoverables are always explicit advanced inputs so the net position remains traceable.