Guidance

SS12/16 – Solvency II: Changes to internal models used by UK insurance firms

Chapter

The quality of model change applications

Printed on: 18/06/2024

Rulebook at: 13/07/2018

3

The quality of model change applications

3.1

The PRA expects firms’ model change applications to be of a high quality. If the PRA considers a firm’s model change application incomplete, or that it does not otherwise appear to be a viable application, the PRA will discuss with the firm an alternative timescale for submitting a revised application.

  • 13/07/2018

3.2

Firms are reminded that the internal model, following model changes, must continue to meet the Solvency II requirements. This includes the requirement to meet validation standards and that a model change application must be signed off by firms’ boards prior to submission.6 The PRA expects a model change application to include model outputs that include the effect of the model change.

  • 6. Rules 7.1 and 14 of the Solvency Capital Requirement – Internal Models Part of the PRA Rulebook.
  • 13/07/2018