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There may be greater benefit for insurers using their own internal models because they are able to use assumptions tailored to the risks of the specific transaction. As the bigger, more sophisticated market participants, they are also the more likely buyers of securitisations. But supervisors have often not been willing to approve models with large deviations from standard industry assumptions, so we do not expect insurers to be able to reduce capital requirements as low as might be indicated by empirical data.

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