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European Insurance and Occupational Pensions Authority

1501

Q&A

Question ID: 1501

Regulation Reference: (EU) No 2015/2451 - templates and structure of the disclosure of specific information by supervisory authorities

Article: 31

Status: Final

Date of submission: 08 Feb 2018

Question

Are both types of internal model approval, i.e. initial approvals and major model changes disclosed in cells B4a to B4da?
How are extension of IM scope considered in the figures?
Are models approved in 2015 included in the information?
How are group models consisdered?

EIOPA answer

Cells B4a to B4da should disclose information on the number of initial model applications submitted and successful. When a new entity enters the scope of a group IM (extension of IM scope), it should increment the number of approvals for solo models in the country where the extension took place.
Information on model changes (other than extensions of scope) could be misleading, as there can be very different types of model changes. However, supervisory authorities should share information on the number of model changes with EIOPA.  

The information should be split between Full IM and Partial IM.
In some cases, there is a risk to breach confidentiality (when very few undertakings apply for an IM or for a change it will be easy to deduce that is was approved/rejected). In such case, when the supervisory authority decides not to publicly disclose the information, it should still share the information with EIOPA.

Regarding internal models approved in 2015 during the preparatory phase, EIOPA recommends using a different column "31/12/2015" to disclose the information.
In case of group internal models approved under article 231 of the Solvency II Directive, supervisory authorities concerned are expected to report the number of solo entities using a group internal model in their country (cells B4a to B4ba).

These recommendations should apply from next year onwards.
In order to complement the information disclosed in Cells B4a to B4da, EIOPA recommends that supervisory authorities disclose information about the number of internal model withdrawals, e.g. due to reversion to the standard formula (as foreseen in articles 117 or 118 of the Solvency II Directive). Indeed this information is needed to deduce the number of "active" internal models in each country from these statistics.