Solvency II Art.112-118: Arts 112 to 118; Art. 44(5) Apply for internal model approval and govern model changes

What does Art.112-118 require?

Undertakings may calculate the SCR with a full or partial internal model approved by the supervisor, on an application with documentary evidence meeting Articles 120 to 125 (partial models: justified scope, better reflecting the risk profile, integrable into the standard formula, possibly with a transitional plan to extend). The AMSB approves the application and major changes and is responsible for systems ensuring the model operates properly. A model change policy, approved at initial approval, distinguishes minor from major changes (major ones need prior approval). Undertakings may not revert to the standard formula without approval, must present a plan or show immateriality if they cease to comply, and the risk-management function designs, validates, documents and reports on the model. The supervisor may require a standard formula estimate.