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Operational Risk Unit-Linked Expense

Calculate the UL_Expense_AddOn instantly.

€

UL_Expense_AddOn

€4 670 000

1Step 1

UL_Expense_AddOn

UL_Expense_AddOn=max⁡(0,Unit-Linked Expenses (Last 12 Months))×0.25\textit{UL\_Expense\_AddOn} = \max(0, \textit{Unit-Linked Expenses (Last 12 Months)}) \times 0.25

Understand the Operational Risk Unit-Linked Expense

Overview

This calculator is the second Operational Risk feeder module.[1] It isolates the Article 204(4) charge for life unit-linked contracts where policyholders bear the investment risk.

Input Terms

  • Unit-Linked Expenses: Annual administrative expenses for unit-linked business.

Technical Rationale

The calculator applies the 25% Article 204(4) factor to unit-linked expenses and returns UL_Expense_AddOn. This keeps unit-linked business separate from the net life premium and provision bases used in the volume-measure calculator.

Important Notes

  • Output handoff: UL_Expense_AddOn feeds the Operational Risk SCR Final Integrator.
  • No BSCR cap here: The 30% BSCR cap is applied only in the final integrator.

Sources

  1. Delegated Regulation (EU) 2015/35 - Art. 204 (Operational risk) - EIOPA

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.