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.

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.

Footnotes

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