Health Income Protection Disability-Morbidity Risk

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Calculate the Stressed Disability/Morbidity Rate - Next 12 Months instantly.

Current Disability or Morbidity Rate - Next Twelve Months

Current Disability or Morbidity Rate - Later Years

Current Recovery Rate

Current Persistency Rate

Disability or Morbidity Increase During Next Twelve Months

Disability or Morbidity Increase Beyond Twelve Months

Recovery-Rate Decrease

Persistency-Rate Increase

Current Disability/Morbidity Rate - Next 12 Months

1.5%

Next 12 Months Stress Multiplier

135.0%

Stressed Disability/Morbidity Rate - Next 12 Months

2.0%

Current Disability/Morbidity Rate - Later Years

1.2%

Later Years Stress Multiplier

125.0%

Stressed Disability/Morbidity Rate - Later Years

1.5%

Current Recovery Rate

8.0%

Recovery Stress Multiplier

80.0%

Stressed Recovery Rate

6.4%

Current Persistency Rate

40.0%

Persistency Stress Multiplier

120.0%

Stressed Persistency Rate

48.0%

Health Income Protection Disability-Morbidity Shock Impact

Shock charge

Retained value

Module	Shock	Pre-shock	Post-shock	Charge
Disability/Morbidity Rate - Next 12 Months	+35%	1.5%	2.0%	0.5%
Disability/Morbidity Rate - Later Years	+25%	1.2%	1.5%	0.3%
Recovery Rate	-20%	8.0%	6.4%	1.6%
Persistency Rate	+20%	40.0%	48.0%	8.0%

1Step 1

Stressed Disability/Morbidity Rate - Next 12 Months

\mathrm{Stressed\ Rate}_{12m}=\mathrm{Current\ Rate}_{12m}\times(1+\mathrm{Next\ 12\ Months\ Increase})

2Step 2

Stressed Disability/Morbidity Rate - Later Years

\mathrm{Stressed\ Rate}_{later}=\mathrm{Current\ Rate}_{later}\times(1+\mathrm{Later\ Years\ Increase})

3Step 3

Stressed Recovery Rate

\mathrm{Stressed\ Recovery\ Rate}=\mathrm{Current\ Recovery\ Rate}\times(1-\mathrm{Recovery\ Rate\ Decrease})

4Step 4

Stressed Persistency Rate

\mathrm{Stressed\ Persistency\ Rate}=\mathrm{Current\ Persistency\ Rate}\times(1+\mathrm{Persistency\ Rate\ Increase})

Understand the Health Income Protection Disability-Morbidity Risk

Overview

Article 156 defines the Health Income Protection Disability-Morbidity Risk stresses for disability, morbidity, recovery, and persistency assumptions.^[1]

Input Terms

Current Disability/Morbidity Rate - Next 12 Months: Representative rate used for disability or morbidity experience in the following 12 months.^[1]
Current Disability/Morbidity Rate - Later Years: Representative rate used for disability or morbidity experience after the following 12 months.^[1]
Current Recovery Rate: Representative recovery rate.^[1]
Current Persistency Rate: Representative persistency rate.^[1]

Technical Rationale

Article 156 captures income-protection morbidity risk through claim inception, claim duration, and policy persistence.^[1] Higher disability or morbidity rates increase the probability of benefits becoming payable, lower recovery rates extend the claim duration, and higher persistency can keep adverse obligations in force.

The threshold conditions on recovery and persistency prevent the shock from being applied where the legal article does not treat those rates as adverse. The displayed assumptions preserve the separate drivers so the valuation model can measure the basic-own-funds effect for the scoped income-protection obligations.

Important Notes

This page specifies the stresses, not the final standalone Income Protection Disability-Morbidity Risk SCR.
Stressed assumptions apply only to income-protection obligations where the disability-morbidity scenario is adverse in the valuation model; this page does not validate that portfolio scope.

Sources

Delegated Regulation (EU) 2015/35 - Art. 156 (Income protection disability-morbidity risk sub-module) - EIOPA

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.