Non-Life Liability Risk Group Risk

Overview

This calculator prepares one selected Article 133 liability risk-group amount.^[1] It gives a compact comparison of the shared group method across all five Annex XI groups.

Input Terms

• Liability Risk Group: The selected Annex XI group: professional malpractice, employers liability, directors and officers, general liability, or non-proportional liability reinsurance.^[1]
• Premium: Premiums earned during the next 12 months for the selected group, before deducting reinsurance premiums.^[1]
• Largest Limit: The largest limit of indemnity provided in the selected group; it supports the Article 133 claim-count diagnostic and does not cap the group amount.^[1]
• Unlimited Cover: A yes/no indicator that the undertaking provides unlimited cover in the selected group; when cover is unlimited, Article 133 sets the diagnostic claim count to one.^[1]

Technical Rationale

The selected group determines the fixed Annex XI factor, so the group amount is driven by the premium base and the prescribed factor for that liability class.

The largest-limit and unlimited-cover inputs support the Article 133 claim-count assumption. They explain the representative number of claims behind the instantaneous loss, but the output remains the selected group's factor-based amount.

Important Notes

• Risk-specific evidence: The same Article 133 method applies to all groups, but the business meaning differs by liability class.
• Recoverables: Article 133 does not deduct reinsurance or SPV recoverables from the instantaneous loss amount. Recovery effects require a stressed basic-own-funds model rather than a simple deduction on this page.