| FIFTH SCHEDULE |
| Paragraph 1 of Second Schedule |
| Component 3 (C3) Requirement — Concentration Risks |
| Concentration risk requirement |
1. Subject to paragraph 2, a registered insurer shall calculate the C3 requirement of any insurance fund established and maintained by the insurer under the Act as the difference between —
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| Alternative method for calculating C3 requirement |
| 2. A registered insurer may use any alternative method to calculate the C3 requirement if the method results in a C3 requirement which is no less than that determined in the manner provided in this Schedule, and in such a case, the Authority may require the insurer to provide documentary evidence of that fact. |