PINS A3.9.2 Long-term insurance risk component

An insurer's long-term insurance risk component is the sum of the following amounts, so far as they relate to the long-term insurance business of the insurer:

(a) 1.25% of the amount of provisions in respect of long-term insurance business that is investment-linked insurance, where the contracts are subject to a capital guarantee;
(b) 0.5% of the amount of provisions in respect of long-term insurance business that is investment-linked insurance, where the contracts are not subject to a capital guarantee;
(c) 3% of the amount of provisions in respect of long-term insurance business other than business described in paragraphs (a) and (b);
(d) the amount obtained by multiplying the amount of capital at risk under rule A3.9.3 by 0.1%;
(e) if the insurer issues policies that are contingent on mortality — the amount of anticipated claims cost arising from a 0.5 per thousand increase in the rate of lives insured dying over the following year.
Amended by QFCRA RM/2013-1 (as from 1st January 2015).