Non-Life Flood Zone WSI

Non-Life Flood Zone WSI

Article 123 requires zone-level weighted sum insured before regional flood correlation and the gross event-sequence uplift are assessed.^[1] The WSI amount is an exposure-preparation input for the selected flood risk zone, not a standalone capital requirement.

Inputs

• Region: The Annex VII region used to deduce the flood risk factor Q.
• Annex IX - Zone: The selected flood risk zone for that region.
• Region Risk Factor Q: The read-only region-level multiplier deduced from Annex VII.
• Zone Risk Weight W: The read-only zone risk-weight multiplier deduced from Annex X.
• Property Sum Insured: Property sum insured for covered flood obligations in the zone.
• Onshore Property Sum Insured: Onshore property sum insured for covered flood obligations in the zone.
• Motor Sum Insured: Motor sum insured included in the flood zone SI formula.
• Lower Amount Cap: Optional cap reflecting the lower potential loss amount for the zone.

Calculation

The zone sum insured combines property, onshore property, and the calibrated motor component. The uncapped WSI then applies the regional factor and zone risk weight to that sum insured, with the optional lower amount cap applied when it binds.

Important Notes

• Exposure Boundary: The Flood Zone WSI output is a weighted-sum-insured input for the selected peril zone. It is not final SCR and should not be treated as a standalone supervisory deviation or reporting conclusion.
• Evidence Boundary: Region mapping, zone selection, property, onshore-property and motor sum-insured source schedules, and any lower amount cap should remain traceable before regional aggregation.