Article 90c Simplified calculation of the capital requirement for fire risk

1. Where Article 88 is complied with, insurance and reinsurance undertakings may calculate the capital requirement for fire risk referred to in Article 132(1) as follows:

SCR_fire = max(SCR_firei; SCR_firec; SCR_firer) 

where:

a) SCR_firei denotes the largest industrial fire risk concentration;

b) SCR_firec denotes the largest commercial fire risk concentration;

c) SCR_firer denotes the largest residential fire risk concentration.

2. The largest industrial fire risk concentration of an insurance or reinsurance undertaking shall be equal to the following:

SCR_firei = max(E_1,i; E_2,i; E_3,i; E_4,i; E_5,i) 

where E_k,i denotes the total exposure within the perimeter of the k-th largest industrial fire risk exposure.

3. The largest commercial fire risk concentration of an insurance or reinsurance undertaking shall be equal to the following:

SCR_firec = max(E_1,c; E_2,c; E_3,c; E_4,c; E_5,c)

where E_k,c denotes the total exposure within the perimeter of the k-th largest commercial fire risk exposure.

4. The

…