(1) The Basic Solvency Capital Requirement shall comprise individual risk modules which are aggregated in accordance with Part 1 of Schedule 3.
(2) It shall consist of at least the following risk modules:
(a) non-life underwriting risk;
(b) life underwriting risk;
(c) health underwriting risk;
(e) counterparty default risk.
(3) An insurance undertaking or reinsurance undertaking shall for the purposes of paragraph (2)(a), (b) and (c), allocate its insurance or reinsurance operations to the underwriting risk module that best reflects the technical nature of the underlying risks.
(4) The correlation coefficients for the aggregation of the risk modules referred to in paragraph (2), as well as the calibration of the capital requirements for each risk module, shall result in an overall Solvency Capital Requirement which complies with the principles set out in Regulation 114.
(5) Each of the risk modules referred to in paragraph (2) shall be calibrated using a Value at Risk
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