TITLE IVALUATION AND RISK-BASED CAPTAL REQUIREMENTS (PILLAR I), ENHANCED GOVERNANCE (PILLAR II) AND INCREASED TRANPARENCY (PILLAR III)
CHAPTER IIIRULES RELATING TO TECHNICAL PROVISIONS
SECTION 2 Data quality
Article 21Appropriate use of approximations to calculate the best estimate
Where insurance and reinsurance undertakings have insufficient data of appropriate quality to apply a reliable actuarial method, they may use appropriate approximations to calculate the best estimate provided that all of the following requirements are met:
- (a)
the insufficiency of data is not due to inadequate internal processes and procedures of collecting, storing or validating data used for the valuation of technical provisions;
- (b)
the insufficiency of data cannot be remedied by the use of external data;
- (c)
it would not be practicable for the undertaking to adjust the data to remedy the insufficiency.