Simplified calculation of the capital requirement for risks in the life lapse risk sub-module

Where Article 88 is complied with, insurance and reinsurance undertakings may calculate each of the following capital requirements on the basis of groups of policies, provided that the grouping complies with the requirements laid down in points (a), (b) and (c) of Article 35:

(a) the capital requirement for the risk of a permanent increase in lapse rates referred to in Article 142(2);

(b) the capital requirement for the risk of a permanent decrease in lapse rates referred to in Article 142(3);

(c) the capital requirement for mass lapse risk referred to in Article 142(6).