Case study
An overseas regulator had previously rejected three internal model applications from an insurer. Crowe UK were appointed to support the insurer's fourth application and ensure success.
Crowe UK independently reviewed both the internal model in question and the application being made to the regulator, and agreed improvements with the organisation that would support a successful application process.
The review concluded that the model itself was technically robust, being used for business decisions, and it satisfied all the relevant requirements of Solvency II. Crowe made a range of recommendations based on regulator feedback, key stakeholder interviews, and a review of the model governance processes. Our recommendations were scored in terms of 'effort' and 'impact. This allowed the organisation to focus resources on quick win activities within the right timescales, before the next application.
The internal model application was ultimately accepted by the regulator, allowing the firm to make use of their own model to calculate the Solvency Capital Requirement and support business decision-making.