Good documentation central to model approval, say supervisors

Standard-forumula firms also face more stringent requirements


It goes without saying that a model for something as important as calculating solvency capital should be well documented. However, all other assumptions to do with an internal model for Solvency II – or the application of the standard formula for that matter – must also be spelled out clearly in the documentation that accompanies it. The directive demands far more than a user manual that is occasionally dipped into for operational instructions or troubleshooting. As insurers progress through the