Solvency II model approvals: lessons from round one

Board members must help shape the model validation process

Patricia Mackenzie is a senior management consultant at Willis Towers Watson.

Most European insurers that have developed full or partial internal models for Solvency II have now gone through at least one cycle of the mandatory regulatory process of validating those models.

As supervisors gain a better understanding of how firms operate under this regulatory regime, the pressure is growing for company boards to shape the validation process.

This presents an opportunity for boards to use