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Non-Life Segment Standard Deviation

Calculate the Segment Standard Deviation instantly.

€
€

Premium Sigma

0.10

->

Reserve Sigma

0.09

=

Segment Standard Deviation

0.09

1Step 1

Premium Sigma

Premium Sigma=non_life_segment_premium_sigma⁡(Annex II Segment)×min⁡(1,max⁡(0,Net-to-Gross Premium Ratio))\textit{Premium Sigma} = \operatorname{non\_life\_segment\_premium\_sigma}\left(\textit{Annex II Segment}\right) \times \min(1, \max(0, \textit{Net-to-Gross Premium Ratio}))
2Step 2

Reserve Sigma

Reserve Sigma=non_life_segment_reserve_sigma⁡(Annex II Segment)\textit{Reserve Sigma} = \operatorname{non\_life\_segment\_reserve\_sigma}\left(\textit{Annex II Segment}\right)
3Step 3

Segment Standard Deviation

Segment Standard Deviation=non_life_segment_standard_deviation⁡(Annex II Segment,Premium Volume,Reserve Volume,Net-to-Gross Premium Ratio)\textit{Segment Standard Deviation} = \operatorname{non\_life\_segment\_standard\_deviation}\left(\textit{Annex II Segment}, \textit{Premium Volume}, \textit{Reserve Volume}, \textit{Net-to-Gross Premium Ratio}\right)

Understand the Non-Life Segment Standard Deviation

Overview

The Non-Life Segment Standard Deviation is the Article 117 volatility measure for a selected Annex II segment.[1] The segment selection determines the premium and reserve volatility factors applied to that segment.

Input Terms

  • Annex II Segment: The non-life segment whose Article 117 volatility factors are applied.[1]
  • Premium Volume: The premium volume measure used in the Article 117 premium volatility component.[1]
  • Reserve Volume: The reserve volume measure used in the Article 117 reserve volatility component.[1]
  • Net-to-Gross Premium Ratio: The Article 117 ratio used to adjust the premium volatility factor where applicable.[1]

Technical Rationale

Article 117 forms segment-level volatility from premium and reserve components before the Annex IV correlation matrix is applied across the portfolio. The segment volatility factor preserves the distinction between premium uncertainty, reserve uncertainty, and the permitted net-to-gross adjustment.

Important Notes

  • Reporting: The segment standard-deviation result supports the combined-standard-deviation fields in the S.26.05.01 non-life underwriting risk reporting view; it is not a standalone SCR component.[2]

Sources

  1. Delegated Regulation (EU) 2015/35 - Art. 117 (Standard deviation for non-life premium and reserve risk) - EIOPA
  2. Commission Implementing Regulation (EU) 2023/894 - QRT S.26.05.01 (SCR non-life underwriting risk) - 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.