Internal models in the form of partial models

(1) Internal models in the form of partial models are approved for the calculation of
1. one or more risk modules or sub-modules of the Basic Solvency Capital Requirement under sections 101 to 106,
2. the capital requirement for operational risk under section 107, and
3. the adjustment under section 108. Partial models may be applied to the entire business activity or only to one or more main business areas.
(2) Sections 115 to 121 apply correspondingly; the limited scope of application of the model must be taken into account. In addition,
1. the Solvency Capital Requirement resulting from the model must better reflect the risk profile of the insurance undertaking than the Solvency Capital Requirement calculated using the standard formula, and
2. the model must
a) comply with the principles of sections 96 to 98, and
b) be fully integrable into the standard formula for the Solvency Capital Requirement, and be consistent in its structure with sections 96 to 98.
(3) The insurance undertaking must adequately justify that the limited scope of application of the model is warranted.
(4) Where the partial model covers only certain sub-modules of a risk module, or only some business areas of an insurance undertaking in respect of a particular risk module, or parts of both, the supervisory authority may require the scope of application of the model to be extended to further sub-modules or business areas of a risk module by way of a transitional plan, until the predominant part of the insurance business in respect of that risk module is covered.