1. The capital requirement for the accident concentration risk sub-module shall be equal to the following:
where:
(a) the sum includes all countries c;
(b) SCR(ac,c) denotes the capital requirement for accident concentration risk of country c.
2. For all countries the capital requirement for accident concentration risk of country c 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 calculated as follows:
where:
(a) Cc denotes the largest accident risk concentration of insurance and reinsurance undertakings in country c;
(b) the sum includes the event types e set out in Annex XVI;
(c) xe denotes the ratio of persons which will receive benefits of event type e as a result of the accident as set out in Annex XVI;
(d) CE(e,c) denotes the average value of benefits payable by insurance a
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