The June 2024 report outlines best practices for model governance in insurance, emphasizing standardized processes across the model life cycle to ensure quality, performance, and compliance. Comprehensive documentation of methodologies, data, assumptions, and metrics is vital for transparency and knowledge sharing. Effective implementation requires explainability, interpretability, stakeholder engagement, and change management. Continuous validation and monitoring help detect performance issues over time. Third-party tools can enhance governance by supporting development, monitoring, compliance, and risk management capabilities.

Join for free to read