Health underwriting risk module

(1) The health underwriting risk module reflects the risk arising from health insurance obligations, in relation to the risks covered and the processes used in conducting the business, whether or not the health insurance is conducted in the manner of life insurance.
(2) The health underwriting risk module comprises at least the risk of loss, or of adverse change in the value, of insurance liabilities, resulting from 1. changes in the level, trend, or volatility of the expenses incurred in servicing insurance contracts, 2. fluctuations in the occurrence, frequency, and severity of insured events, and in the timing and amount of claims settlements at the time the technical provisions are established, and 3. significant uncertainty of the assumptions relating to pricing and provisioning associated with the outbreak of major epidemics, and the unusual accumulation of risks that arise under such extreme circumstances.