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Recital 135

Recital 135

(135)In order for an internal model used only for the calculation of the consolidated group Solvency Capital Requirement to be widely used in and play an important role in the system of governance of the group, the output of that internal model should be used by insurance and reinsurance undertaking whose business is fully or partly in the scope of the internal model. In this context, these undertakings should not be required to meet the use test requirements as if they were using that internal model for the calculation of their Solvency Capital Requirement. The requirement to meet the use test for these undertakings should be limited to the output of that internal model and for the purposes of a consistent implementation of the risk management and internal control systems throughout the group.

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