Subsection 3: Internal model

Insurance and reinsurance undertakings shall draw up documentation describing the details of the design and operation of their internal model. This documentation shall demonstrate that the undertaking complies with Articles R. 352-18 to R. 352-22. It provides a detailed description of the theory, assumptions and mathematical and empirical foundations underlying the internal model. It mentions any circumstances in which the internal model does not work effectively. These undertakings shall ensure…

The use of a model or data from a third party does not exempt insurance and reinsurance undertakings from the requirements applicable to the internal model referred to in Articles R. 352-18 to R. 352-23. The detailed rules for the application of this Article are set out in Article 247 of Commission Delegated Regulation (EU) 2015/35 of 10 October 2014.