1. The capital requirement for earthquake risk shall be equal to the following:
where:
(a) the sum includes all possible combinations (r,s) of the regions set out in Annex VI;
(b) CorrEQ(r,s) denotes the correlation coefficient for earthquake risk for region r and region s as set out in Annex VI;
(c) SCR(earthquake,r) and SCR(earthquake,s) denote the capital requirements for earthquake risk in region r and s respectively;
(d) SCR(earthquake,other) denotes the capital requirement for earthquake risk in regions other than those set out in Annex XIII.
2. For all regions set out in Annex VI, the capital requirement for earthquake risk in a particular region r shall be equal to the loss in basic own funds of insurance and reinsurance undertakings that would result from an instantaneous loss of an amount that, without deduction of the amounts recoverable from reinsurance contracts and special purpose vehicles, is equal to the following amount:
where:
(a) [deleted]
(b) the sum includes all
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