Unanswered questions remain on model change policies

Experts divided on whether external figures alone will count as 'reactive' or whether expert judgements will be incorporated too

European insurers are unclear whether small changes to their internal models will have to be reported and approved by regulators, despite the publication of new guidelines issued earlier this month.

In its first set of Solvency II guidelines, published on June 2, the European Insurance and Occupational Pensions Authority (Eiopa) provided guidance for firms on internal models, including details on validating and documenting models, and their use of external data. But confusion remains on the