IAIS Insurance Core Principles (ICPs) 17.16: 17.16 Model governance and the use test: Board and management control, understanding and embedding in risk strategy and operations

Where internal models are allowed, the insurer must have adequate governance and internal controls over the model, ensure the Board and Senior Management have overall control of and responsibility for its construction and use, understand its construction at appropriate levels and the consequences of its outputs and limitations for risk and capital decisions, and pass a use test showing the model, its methods and results are fully embedded in its risk strategy and operational processes.