Skip to content

Underwriting Stress Branch Selector

Calculate the Branch Evidence Complete, Branch Evidence Breach, and Selected Underwriting Basic Own Funds Loss instantly.

€
€
€

Selected Underwriting BoF Loss

€1 500 000

1Step 1

Branch A / B Loss Gap

Branch A / B Loss Gap=Branch A BoF Loss−Branch B BoF Loss\textit{Branch A / B Loss Gap} = \textit{Branch A BoF Loss} - \textit{Branch B BoF Loss}
2Step 2

Branch A / C Loss Gap

Branch A / C Loss Gap=Branch A BoF Loss−Branch C BoF Loss\textit{Branch A / C Loss Gap} = \textit{Branch A BoF Loss} - \textit{Branch C BoF Loss}
3Step 3

Branch B / C Loss Gap

Branch B / C Loss Gap=Branch B BoF Loss−Branch C BoF Loss\textit{Branch B / C Loss Gap} = \textit{Branch B BoF Loss} - \textit{Branch C BoF Loss}
4Step 4

Branch A Binding

Branch A Binding=gte⁡(Branch A BoF Loss,max⁡(Branch B BoF Loss,Branch C BoF Loss))\textit{Branch A Binding} = \operatorname{gte}\left(\textit{Branch A BoF Loss}, \max(\textit{Branch B BoF Loss}, \textit{Branch C BoF Loss})\right)
5Step 5

Branch B Binding

Branch B Binding=gte⁡(Branch B BoF Loss,max⁡(Branch A BoF Loss,Branch C BoF Loss))\textit{Branch B Binding} = \operatorname{gte}\left(\textit{Branch B BoF Loss}, \max(\textit{Branch A BoF Loss}, \textit{Branch C BoF Loss})\right)
6Step 6

Branch C Binding

Branch C Binding=gte⁡(Branch C BoF Loss,max⁡(Branch A BoF Loss,Branch B BoF Loss))\textit{Branch C Binding} = \operatorname{gte}\left(\textit{Branch C BoF Loss}, \max(\textit{Branch A BoF Loss}, \textit{Branch B BoF Loss})\right)
7Step 7

Branch Evidence Complete

Branch Evidence Complete=min⁡(Branch A Evidence Present (0/1),Branch B Evidence Present (0/1),Branch C Evidence Present (0/1))\textit{Branch Evidence Complete} = \min(\textit{Branch A Evidence Present (0/1)}, \textit{Branch B Evidence Present (0/1)}, \textit{Branch C Evidence Present (0/1)})
8Step 8

Branch Evidence Breach

Branch Evidence Breach=1−Branch Evidence Complete\textit{Branch Evidence Breach} = 1 - \textit{Branch Evidence Complete}
9Step 9

Selected Underwriting BoF Loss

Selected Underwriting BoF Loss=max⁡(Branch A BoF Loss,Branch B BoF Loss,Branch C BoF Loss)\textit{Selected Underwriting BoF Loss} = \max(\textit{Branch A BoF Loss}, \textit{Branch B BoF Loss}, \textit{Branch C BoF Loss})

Understand the Underwriting Stress Branch Selector

Overview

This calculator isolates the branch-selection step used by underwriting shock calculators that compare more than one stressed basic-own-funds loss.[1]

Input Terms

  • Branch BoF Losses: The standalone loss amounts produced by the relevant underwriting stress branches.
  • Branch Evidence Flags: Completeness flags showing whether each prepared branch loss has source evidence.

Technical Rationale

The selector compares the supplied branch losses and returns the largest adverse branch:

`Selected underwriting BoF loss = max(branch A loss, branch B loss, branch C loss)`

Binding flags show which branch or branches equal the selected loss. Pairwise gaps show how far each branch is from the alternatives.

Important Notes

  • This is an atomistic support calculator for branch selection only. It does not calculate a stressed balance sheet.
  • Use `underwriting-stressed-bof-loss-bridge` to inspect each prepared stressed-BoF loss before comparing branches.
  • For two-branch use cases, set the unused third branch loss to zero and its evidence flag to one.
  • The selected loss supports lapse, morbidity, and similar underwriting shock calculators that feed the S.25.01.01 standard-formula reporting view through their module results.[[ref: qrt-s2501]]

Sources

  1. Directive 2009/138/EC - Art. 101 (99.5% VaR / 1-in-200 calibration) - EIOPA
  2. Commission Implementing Regulation (EU) 2023/894 - QRT S.25.01.01 (SCR standard formula) - 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.