1. 1. Insurance and reinsurance undertakings shall document the following processes:
((a))(a) the collection of data and analysis of its quality and other information that relates to the calculation of technical provisions;
((b))(b) the choice of assumptions used in the calculation of technical provisions, in particular the choice of relevant assumptions about the allocation of expenses;
((c))(c) the selection and application of actuarial and statistical methods for the calculation of technical provisions;
((d))(d) the validation of technical provisions.
2. 2. For the purposes of point (a) of paragraph 1, the documentation shall include:
((a))(a) a directory of the data used in the calculation of the technical provisions, specifying their source, characteristics and usage;
((b))(b) the specification for the collection, processing and application of data referred to in Article 19(3)(e);
((c))(c) where data are not used consistently over time in the calculation of technical provisions, a description of the inconsistent use and its justification.
3. 3. For the purposes of point (b) of paragraph 1, the documentation shall include:
((a))(a) a directory of all the relevant assumptions that the calculation of technical provisions are based upon; this shall include assumptions on future management actions;
((b))(b) a justification for the choice of the assumption in accordance with Subsection 1 of Section 3 of Chapter III;
((c))(c) a description of the inputs on which the choice is based;
((d))(d) the objectives of the choice and the criteria used for determining the appropriateness of this choice;
((e))(e) any material limitations in the choice made;
((f))(f) a description of the processes in place to review the choice of assumptions;
((g))(g) a justification for the changes of assumptions from one period to another and an estimation of the impact of material changes;
((h))(h) the relevant deviations referred to in Article 23(2).