Health NSLT Volume Measure

Health

Calculate the Total Non-Similar-to-Life Techniques Volume Measure instantly.

#	Segment	P next 12m (gross)	P prior 12m (gross)	FP existing (gross)	FP future (gross)	Claims BE	Alt.
	Segment row 1	Gross premiums next 12m row 1€	Gross premiums prior 12m row 1€	Future premiums existing row 1€	Future premiums future row 1€	Claims best estimate row 1€	Use alternative method row 1

Medical Expense Volume

€430 000

Total NSLT Volume Measure

€430 000

Medical Expense Premium Volume

€250 000

Medical Expense Reserve Volume

€180 000

Medical Expense Geo Diversification

100.0%

Medical Expense Net-to-Gross Ratio

100.0%

Medical Expense Segment Volume

€430 000

1Step 1

Net each premium base against admissible reinsurance (Art. 116(4-5))

P^{\mathrm{net}}_s = P^{\mathrm{gross}}_s - P^{\mathrm{admissible\,RI}}_s

2Step 2

Compute the premium volume measure per segment (Art. 116(2))

V^{\mathrm{prem}}_s = \max\!\bigl(P^{\mathrm{net}}_{s,\mathrm{next}},\,P^{\mathrm{net}}_{s,\mathrm{prior}}\bigr) + \mathrm{FP}_{\mathrm{exist}} + 0.3\,\mathrm{FP}_{\mathrm{future}}

3Step 3

Compute the reserve volume measure per segment (Art. 116(3))

V^{\mathrm{res}}_s = \max\!\bigl(0,\;\mathrm{BE}_s\bigr)

4Step 4

Compute the geographical diversification factor (Annex III)

\mathrm{DIV}_s = \frac{\sqrt{\sum_r\,V_{s,r}^2}}{\sum_r\,V_{s,r}}

5Step 5

Compute the total segment volume measure (Art. 116(3))

V_s = \bigl(V^{\mathrm{prem}}_s + V^{\mathrm{res}}_s\bigr)\,\times\,\bigl(0.75 + 0.25\,\mathrm{DIV}_s\bigr)

6Step 6

Sum segment volume measures

V_h = \sum_s V_s

Understand the Health NSLT Volume Measure

Overview

This calculator implements the Health NSLT Volume Measure within the Solvency II standard formula.^[1] The volume measure is defined as the fundamental net exposure metric used to scale the standard-deviation of health-NSLT premium and reserve risks. It ensures that the capital requirement is proportional to the size of the health-undertaking's earned-premium income and technical provisions.

Input Terms

Health Premium Volume Measure (V_prem_h): The measure of the earned-premiums for health-NSLT business in the current and future reporting periods.
Health Reserve Volume Measure (V_res_h): The measure of the technical provisions for health-claims outstanding, net of reinsurance.
Undertaking-Specific Parameters (USP): The custom health-volume-measure used for specialized health business where approved.

Technical Rationale

The Health NSLT Volume Measure is the primary scaling factor for the Health NSLT Premium & Reserve Risk requirement. It ensures that the capital requirement accounts for both the volatility of health-claims and the risk of health-reserve inadequacy.

The calculation aggregates the health-premium measure (based on the maximum of past, current, and future premiums) and the health-reserve measure (representing the net best-estimate). The volume measures are calculated for each health line of business (LoB) and then aggregated using the prescribed risk-weights.^[1] This ensures the undertaking holds enough capital to absorb fluctuations in its health-business volume. The results feed the Health NSLT Underwriting Risk module.

Important Notes

Regulatory deviation: Material deviation from standard-formula assumptions at this layer may support a capital add-on or a move toward an internal model where justified.^[2]
Reporting: The displayed result is intended to support the corresponding standard-formula component feeding the S.25.01 standard-formula reporting view.^[3]

Sources

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.