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Application provision

1.1 Unless otherwise stated, this Part applies to:

  1. (1) a UK Solvency II firm; and
  2. (2) in accordance with Insurance General Application 3, the Society.

4.1

01/01/2016

Where an internal model approval application relates to the use of a partial internal model, the internal model requirements apply with any changes that are necessary to take account of the limited scope of the application of the internal model.

Additional Notes


[Note: Art. 112(3) of the Solvency II Directive]

4.2

01/01/2016

A firm making an internal model approval application to use a partial internal model must:

  1. (1) explain, and properly justify, the reason for the limited scope of application of the internal model;
  2. (2) explain how the resulting SCR reflects more appropriately the risk profile of the firm and complies with Solvency Capital Requirement - General Provisions 2 to 4; and
  3. (3) demonstrate that the design of its partial internal model is consistent with the principles in Solvency Capital Requirement - General Provisions 2 to 4 so as to allow the partial internal model to be fully integrated into the standard formula.

Additional Notes


[Note: Art. 113(1) of the Solvency II Directive]