Life Disability-Morbidity Risk

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Calculate the Stressed Disability/Morbidity Rate - Next 12 Months, Stressed Disability/Morbidity Rate - Later Years, and Stressed Recovery Rate instantly.

Current Disability or Morbidity Rate - Next Twelve Months

Current Disability or Morbidity Rate - Later Years

Current Recovery Rate

Disability or Morbidity Increase During Next Twelve Months

Disability or Morbidity Increase Beyond Twelve Months

Recovery-Rate Decrease

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%

Life 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%

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})

Understand the Life Disability-Morbidity Risk

Overview

Article 139 defines the Life Disability-Morbidity Risk stresses for obligations exposed to adverse disability, morbidity, and recovery 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 disability or morbidity recovery rate.^[1]

Technical Rationale

Article 139 captures disability-morbidity risk through both claim inception and claim duration.^[1] Higher disability or morbidity rates increase the probability of benefits becoming payable, while lower recovery rates extend the period over which those benefits remain payable.

The stronger first-year incidence shock reflects near-term morbidity volatility, while the later-year shock and recovery reduction preserve the longer-duration reserve effect. Probability caps keep the displayed assumptions within valid rate bounds before the valuation model measures the basic-own-funds loss.

Important Notes

This page specifies the stresses, not the final standalone Life Disability-Morbidity Risk SCR.
The simplification approach remains separate from this standard calculation.
Stressed assumptions apply only to obligations where the disability-morbidity scenario is adverse in the valuation model; this page does not validate that portfolio scope.
A 100% recovery rate that merely represents benefit termination after a fixed contractual period is a valuation-scope matter rather than a genuine recovery-rate assumption on this page.

Sources

Delegated Regulation (EU) 2015/35 - Art. 139 (Life 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.