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Non-Life Earthquake Region Risk

Calculate the Earthquake Region Solvency Capital Requirement instantly.

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Annex IX - ZoneWSI
1
€
2
€
3
€

Gross Zone WSI

€2 400 000

Before zone correlations

−

Zone Diversification Benefit

€0

−0.0% of standalone

Capital relief

=

Earthquake Region SCR

€2 400 000

Final regional capital requirement

Specified earthquake loss build-up

Waterfall chart showing standalone component risk amounts, diversification benefit, and diversified result.
StepImpactRunning
Annex IX - Zone 1012000001200000
Annex IX - Zone 118000002000000
Annex IX - Zone 124000002400000
Gross WSI24000002400000
Specified Earthquake Loss24000002400000
Earthquake zone WSI shares
Earthquake zone WSI sharesShare of each segment in the total.Annex IX- Zone 1050.0% · €1.2MAnnex IX- Zone 1133.3% · €800KAnnex IX- Zone 1216.7% · €400K
ModuleShareAmount
Annex IX - Zone 1050.0%€1.2M
Annex IX - Zone 1133.3%€800K
Annex IX - Zone 1216.7%€400K

Earthquake Annex XXIII - Zone correlation matrix

1.001.00
Earthquake Annex XXIII - Zone correlation matrix
1Annex IX - Zone 102Annex IX - Zone 113Annex IX - Zone 12
1Annex IX - Zone 10
1.00
1.00
1.00
2Annex IX - Zone 11
1.00
1.00
1.00
3Annex IX - Zone 12
1.00
1.00
1.00
1Step 1

Aggregate zone WSI values using Annex XXIII correlations

Lr=∑i,jCorrr,i,j×WSIi×WSIjL_r=\sqrt{\sum_{i,j}Corr_{r,i,j}\times WSI_i\times WSI_j}
2Step 2

Use the specified loss as the regional capital requirement

SCRr=LrSCR_r=L_r

Understand the Non-Life Earthquake Region Risk

Non-Life Earthquake Region Risk

Article 122 defines earthquake risk through region-specific loss amounts built from zone weighted sums insured and zone correlations.[1] This regional calculation establishes the Earthquake Region SCR for the selected Annex VI region before the Article 122 regional aggregation step.

Inputs

  • Annex VI Region: The earthquake region being calculated. The selected region preserves traceability to the Article 122 regional aggregation basis.
  • Earthquake Zone Inputs: Each zone input selects an Annex IX zone and one zone WSI amount. Non-Life Earthquake Zone WSI provides the calculation path from sums insured, risk weights, and any lower amount cap.
  • Zone Correlations: Zone-pair coefficients are deduced from Annex XXIII for the selected region and selected zones. They are Article 122 legal parameters rather than independent assumptions.

Calculation

The specified earthquake loss is calculated from the zone weighted sums insured and the Annex XXIII zone correlations.

The output is the Earthquake Region SCR for the selected region.

Important Notes

The Earthquake Region SCR output is the regional amount used in the Article 122 earthquake-risk aggregation. This page models the gross regional formula path. It does not calculate how reinsurance contracts or special purpose vehicles would respond to any separate recoveries model.

  • Gross vs. Net SCR: This calculator determines the standalone Non-Life Earthquake Region Risk SCR. Solvency II risk is only finalized as a net impact on Basic Own Funds after diversification in Non-Life Risk, then within BSCR, and after the top-level LAC TP and LAC DT adjustments.
  • Regulatory deviation: Material deviation from standard-formula assumptions at this layer may support a capital add-on or a move toward an internal model where justified.[2]
  • Reporting: The displayed result is intended to support the corresponding standard-formula component for the S.25.01.01 standard-formula reporting view.[3]

Sources

  1. Delegated Regulation (EU) 2015/35 - Art. 122 (Earthquake risk sub-module) - EIOPA
  2. Directive 2009/138/EC - Art. 37 (Capital add-on) - EIOPA
  3. Commission Implementing Regulation (EU) 2023/894 - QRT S.25.01.01 (SCR standard formula) - EUR-Lex

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.