Minimum content of the documentation

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.