(1) An insurance undertaking or reinsurance undertaking shall demonstrate that its internal model is widely used in and plays an important role in its system of governance, referred to in Regulations 44 to 51, in particular -

(a) its risk-management system as laid down in Regulation 46 and its decision making processes, and

(b) its economic and solvency capital assessment and allocation processes, including the assessment referred to in Regulation 47.

(2) In addition, the undertaking shall demonstrate that the frequency of calculation of the Solvency Capital Requirement using the internal model is consistent with the frequency with which it uses its internal model for the other purposes covered by paragraph (1).

(3) The board of directors of the undertaking is responsible for ensuring the ongoing appropriateness of the design and operations of the internal model, and that the internal model continues to appropriately reflect the risk profile of the undertaking.