A holistic approach to ensure clarity and completeness in model validations

The level of sophistication of internal solvency models has increased during the past decades. In the same way has the level on how much companies, stakeholders and regulators rely on them increased. For a responsible and meaningful usage of solvency models and their results, it is essential to validate them properly on a regular basis.

Azenes’ Validation Cube provides a holistic framework to validate internal solvency models of (re)insurance companies. Within this framework not only the model itself but also its usage and its embedding into the business are considered and evaluated.

The full article is published here.