Deviations from the standard formula

(1) Insurance undertakings may use a simplified calculation for a sub-module or risk module where the nature, scale, and complexity of the risks justify this and it would be disproportionate to require the insurance undertaking to apply the standard calculation in that respect. The simplified calculations must be calibrated in accordance with section 97(2).
(2) With the approval of the supervisory authority, insurance undertakings may replace a subset of parameters used in calculating the underwriting risk modules with undertaking-specific parameters. Such parameters are calibrated on the basis of the undertaking's internal data, or on the basis of data directly relevant to that undertaking's business, using standardised methods. The data used must be accurate, complete, and appropriate.