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PRA (2018a)Supervisory Statement SS17/16 (updated October 2018) Solvency II: internal models - assessment, model change and the role of non-executive directorshere

Introduction (partial)

"In this supervisory statement, the PRA sets out its expectations for [insurers subject to Solvency II] in the following areas: internal model applications; the assessment of credit risk; dealing with variability in premium provisions; the effect of stresses on the volatility adjustment; the role of non-executive directors; model justification and validation and the role of boards; the PRA’s use of quantitative analysis in approving models; and scope, identification and classification, governance and reporting of internal model changes."


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