Article 236 Future management actions

1.

(a)

the assumptions on future management actions used in the calculations for the internal model are determined in an objective manner;

(b)

assumed future management actions are realistic and consistent with the insurance or reinsurance undertaking's current business practice and business strategy, including the use of risk-mitigation techniques and, where there is sufficient evidence that the undertaking will change its practices or strategy, the assumed management actions are consistent with the changed practices or strategy;

(c)

assumed future management actions are consistent with each other;

(d)

assumed future management actions are not contrary to any obligations towards policy holders and beneficiaries or to legal provisions;

(e)

assumed future management actions take account of any public information or communication by the insurance or reinsurance undertaking as to the actions that it would expect to take or not take.

2.

(a)

a comparison of assumed future management actions with management actions taken previously by the insurance or reinsurance undertaking;

(b)

a comparison of future management actions taken into account in the current and past calculations of the internal model.

3.

(a)

the identification of future management actions implemented in the internal model;

(b)

the identification of the specific circumstances in which the insurance or reinsurance undertaking would reasonably expect to carry out the future management actions identified pursuant to point (a);

(c)

the identification of the specific circumstances in which the insurance or reinsurance undertaking may not be able to carry out the future management actions identified pursuant to point (a), and a description of how those circumstances are reflected in the internal model;

(d)

the order in which future management actions would be carried out and the governance requirements applicable to those future management actions;

(e)

a description of any ongoing work required to ensure that the insurance or reinsurance undertaking is in a position to carry out the future management actions identified pursuant to point (a);

(f)

a description of how future management actions have been reflected in the calculation of the probability distribution forecast;

(g)

a description of the applicable internal reporting procedures, which shall include at least an annual communication to the administrative, supervisory or management body, that cover future management actions implemented in the internal model.

4.