Minimum content of the documentation
Article 244
The documentation of the internal model shall include all of the following information: (a) an inventory of all the documents which form part of the documentation; (b) the policy for changing the internal model as referred to in Article 115 of Directive 2009/138/EC; (c) a description of the policies, controls and procedures for the management of the internal model, including responsibilities assigned to staff members of the insurance or reinsurance undertaking; (d) a description of the information technology used in the internal model, including any contingency plans relating to the information technology used; (e) all relevant assumptions on which the internal model is based and their justification in accordance with Article 230(2); (f) the explanation of the methodology used to set assumptions referred to in point (c) of Article 230(2) which shall cover the following: (i) the inputs on which the choice of assumptions is based; (ii) the objectives of the choice of assumptions and the criteria used for determining the appropriateness of the choice; (iii) any limitations in the choice of assumptions made; (g) a directory of the data used in the internal model, specifying their source, characteristics and usage; (h) the specification for the collection, processing and application of data referred to in Article 231(3)(e); (i) where data are not used consistently over time in the internal model, a description of the inconsistent use and its justification; (j) the specification of the qualitative and quantitative indicators for the coverage of risks referred to in Article 233; (k) a description of the risk-mitigation techniques that are taken into account in the internal model as referred to in Article 235 and an explanation of how the risks arising from the use of risk-mitigation techniques are reflected in that internal model; (l) a description of the future management actions taken into account in the internal model as referred to in Article 236 and a description of the relevant deviations referred to in Article 236(2); (m) the specifications for the profit and loss attribution referred to in Article 240(1); (n) the specifications for the model validation process referred to in Article 241(3); (o) the results of the validation in relation to compliance with Article 101 of Directive 2009/138/EC; (p) in relation to external models and data: (i) the role of external models and data in the internal model; (ii) the reasons for preferring external models to internally developed models and external data to internal data; (iii) the alternatives to the use of external models and data considered by the insurance or reinsurance undertaking and an explanation of the decision in favour of a particular external model or a set of external data.