Where calculation of the Solvency Capital Requirement using the standard formula is not appropriate because the risk profile of the insurance undertaking deviates materially from the assumptions underlying the standard formula, the supervisory authority may require the undertaking, in calculating the underwriting risk modules, to replace a subset of the parameters used in the standard formula with undertaking-specific parameters. In calculating these specific parameters, the undertaking must comply with the requirements of section 97(2) and section 109(2), second and third sentences.
Subdivision 3
Internal models