S.L. 403.24 Art. 8Supervisoryreview process.

When carrying out the supervisory review process referred to in article 31B of the Act, the competent authority:

(a) shall have in place appropriate monitoring tools that enable it to identify deteriorating financial conditions in an authorised insurance undertaking or an authorised reinsurance undertaking and to monitor how that deterioration is remedied;

(b) may develop, where appropriate, the necessary quantitative tools under the supervisory review process to assess the ability of an authorised insurance undertaking or an authorised reinsurance undertaking to cope with possible events or future changes in economic conditions that could have unfavourable effects on its overall financial standing.