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Version status: Amended | Document consolidation status: Updated to reflect all known changes
Version date: 2 April 2016 - onwards
Version 3 of 3

Annex XVIII Intergration techniques for partial internal models

A. General provisions

(1) For the purposes of this Annex, the following definitions shall apply:

(a) 'unit of the partial internal model' is a component of the partial internal model that is separately calculated and not aggregated within the partial internal model;

(2) Where insurance and reinsurance undertakings apply integration techniques 1 to 5, their Solvency Capital Requirement shall be the sum of the following items:

(a) the Basic Solvency Capital Requirements as laid down in sections C to F;

(b) the capital requirement for operational risk as laid down in Article 107 of Directive 2009/138/EC, where that capital requirement is not within the scope of the partial internal model, and calculated with the partial internal model, where that capital requirement is within the scope of the partial internal model;

(c) the adjustment for the loss-absorbing capacity of technical provisions and deferred taxes, as laid down in paragraph 3, where that adjustment is not within the scope of the partial internal model, and calculated with the partial internal model where that adjustment is within the scope of the partial internal model.

(3) Where the adjustment for the loss-absorbing capacity of technical provisions and deferred taxes is not within the scope of the partial internal model, it shall be calculated as laid down in Articles 205 to 207, but with the following changes: