(1) An insurance undertaking or reinsurance undertaking may use a different time period or risk measure than that set out in Regulation 114(3) to (5) for internal modelling purposes as long as the outputs of the internal model can be used by the undertaking to calculate its Solvency Capital Requirement in a manner that provides policy holders and beneficiaries with a level of protection equivalent to that set out in Regulation 114.

(2) Where practicable, the undertaking shall derive its Solvency Capital Requirement directly from the probability distribution forecast generated by its internal model, using the Value-at-Risk measure set out in Regulation 114(5).

(3) Where the undertaking cannot derive its Solvency Capital Requirement directly from the probability distribution forecast generated by its internal model, the Bank may allow approximations to be used in the process to calculate the Solvency Capital Requirement, as long as the undertaking can demonstrate to the Bank that policy holders are provided with a level of protection equivalent to that provided for in Regulation 114.