Non-Life Segment Volume Measure

Overview

The Non-Life Segment Volume Measure is the Article 116 exposure amount for a selected Annex II segment.^[1] It combines the segment premium volume, reserve volume, and geographical diversification factor before the portfolio-level volume measure is summed.

Input Terms

• Annex II Segment: The non-life segment whose Article 116 volume amount is being measured.^[1]
• Premium Volume: The segment premium volume under the Article 116 premium component.^[1]
• Reserve Volume: The net best-estimate claims provision amount used as the Article 116 reserve volume measure.^[1]
• Geographical Diversification Factor: The segment geographical diversification factor defined by Article 116.^[1]

Technical Rationale

Article 116 blends premium and reserve exposure with the segment geographical diversification factor because non-life underwriting scale depends on both expected future business and existing reserves. The geographical factor adjusts the premium and reserve base for prescribed regional spread before the portfolio-level volume amount is formed.

Important Notes

• Reporting: The segment volume measure supports the premium and reserve volume fields in the S.26.05.01 non-life underwriting risk reporting view; it is not a standalone SCR component.^[2]