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Recital 6

Recital 6

(6)As part of the supervisory review process, it is important for supervisory authorities to be able to monitor the adequacy of internal models. Partial and full internal models allow to capture the individual risk of a company better and Directive 2009/138/EC allows insurance and reinsurance undertakings to use them for determining capital requirements without limitations stemming from the standard formula. However, assessments based on non-standardized information make supervision more difficult. Supervisory authorities should therefore benefit from new templates and clarified instructions, which support sensible data production.

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