1. Member States shall ensure that insurance or reinsurance undertakings may calculate the Solvency Capital Requirement using a full or partial internal model as approved by the supervisory authorities.
2. Insurance and reinsurance undertakings may use partial internal models for the calculation of one or more of the following:
(a) one or more risk modules, or sub-modules, of the Basic Solvency Capital Requirement, as set out in Articles 104 and 105;
(b) the capital requirement for operational risk as set out in Article 107;
(c) the adjustment referred to in Article 108.
In addition, partial modelling may be applied to the whole business of insurance and reinsurance undertakings, or only to one or more major business units.
3. In any application for approval, insurance and reinsurance undertakings shall submit, as a minimum, documentary evidence that the internal model fulfils the requirements set out in Articles 120 to 125.
Where the application for that approval relates to a partial…