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Non-Life Flood Region Risk

Calculate the Flood Region Solvency Capital Requirement instantly.

#
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

=

Specified Flood Loss

€2 400 000

Feeds the regional event-sequence step

Specified Flood Loss

€2 400 000

Zone-correlation result

×

Gross Event-Sequence Factor

110%

Before reinsurance/SPV recoveries

=

Flood Region SCR

€2 640 000

Feeds top-level Flood Risk

Specified flood loss build-up

Waterfall chart showing standalone component risk amounts, diversification benefit, and diversified result.
StepImpactRunning
Annex IX - Zone 112000001200000
Annex IX - Zone 28000002000000
Annex IX - Zone 34000002400000
Gross WSI24000002400000
Specified Flood Loss24000002400000
Flood zone WSI shares
Flood zone WSI sharesShare of each segment in the total.Annex IX - Zone 150.0% · €1.2MAnnex IX - Zone 233.3% · €800KAnnex IX - Zone 316.7% · €400K
ModuleShareAmount
Annex IX - Zone 150.0%€1.2M
Annex IX - Zone 233.3%€800K
Annex IX - Zone 316.7%€400K

Flood Annex XXIV - Zone correlation matrix

1.001.00
Flood Annex XXIV - Zone correlation matrix
1Annex IX - Zone 12Annex IX - Zone 23Annex IX - Zone 3
1Annex IX - Zone 1
1.00
1.00
1.00
2Annex IX - Zone 2
1.00
1.00
1.00
3Annex IX - Zone 3
1.00
1.00
1.00

Flood Region Event-Sequence Shock Impact

Shock increase
Base value
ModuleShockPre-shockPost-shockCharge
Specified Flood Loss+10%€2,400,000€2,640,000€240,000
1Step 1

Aggregate zone WSI values using Annex XXIV 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

Apply the gross article event-sequence factor

SCRr=GrossFactor×LrSCR_r=GrossFactor\times L_r

Understand the Non-Life Flood Region Risk

Non-Life Flood Region Risk

Article 123 defines flood risk through region-specific loss amounts built from zone weighted sums insured and zone correlations.[1] This regional calculation establishes the Flood Region SCR for the selected Annex VII region before the Article 123 regional aggregation step.

Inputs

  • Annex VII Region: The flood region being calculated. The selected region preserves traceability to the Article 123 regional aggregation basis.
  • Flood Zone Inputs: Each zone input selects an Annex IX zone and one zone WSI amount. Non-Life Flood 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 XXIV for the selected region and selected zones. They are Article 123 legal parameters rather than independent assumptions.

Calculation

The specified flood loss is calculated from the zone weighted sums insured and the Annex XXIV zone correlations.

Article 123 applies the gross event-sequence factor to the specified loss. For flood, the Article 123 event sequences both sum to 110% of the specified loss before reinsurance and SPV recoveries. Because this page does not model recoveries event by event, it displays the result as a gross event-sequence uplift, not as separate scenario losses.

Important Notes

The Flood Region SCR output is the regional amount used in the Article 123 flood-risk aggregation. This page models the gross regional formula path. It does not calculate how reinsurance contracts or special purpose vehicles respond to the ordered event sequence; that would require a separate reinsurance-aware event model.

  • Gross vs. Net SCR: This calculator determines the standalone Non-Life Flood 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. 123 (Flood 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.