1. The capital requirement for the pandemic risk sub-module 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) E denotes the income protection pandemic exposure of insurance and reinsurance undertakings;
(b) the sum includes all countries c;
(c) Nc denotes the number of insured persons of insurance and reinsurance undertakings which meet all of the following conditions:
(i) the insured persons are inhabitants of country c,
(ii) the insured persons are covered by medical expense insurance or reinsurance obligations, other than workers' compensation insurance or reinsurance obligations, that cover medical expenses resulting from an infectious disease;
(d) Mc denotes the expected average amount payable by insurance or reinsurance undertakings per insur
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