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Lapse risk for the basic health insurance under Solvency II

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Question:

How should the lapse risk for the basic health insurance be calculated under Solvency II?

Published: 24 April 2015

Answer:

Under Article 150 of the Solvency II Delegated Regulation health insurers should calculate a capital requirement for the lapse risk of the health insurance business. As the basic health insurance is a compulsory insurance without the possibility of early release, it has a negligible lapse risk.

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