EIOPA issues Internal Model opinion: EIOPA has issued an opinion directed at National Competent Authorities (NCAs) on the preparation for Internal Model (IM) applications. The opinion advises NCAs:

  • that they should require that IMs take into account the risks related to Sovereign Exposures;
  • accept and assess the IM application on a “best endeavours basis” if risk-free rates were not available sufficiently in advance of the date on which undertakings make an application to use an IM;
  • it is considered good practice that NCAs compare different IMs better to understand them.

(Source: EIOPA Opinion on the Preparation for Internal Model Applications)