an effective internal audit function and we are often asked about the pros and cons of different models. We have therefore prepared a set of case studies showing how organisations in the private and public sectors in the UK and Ireland have chosen different ways to structure and deliver effective internal audit . This article provides an overview of how internal models are used to calculate the Solvency Capital Requirement and the advantages and disadvantages of adopting this approach. It also highlights the use test, proxy techniques, and the development of full or partial internal models. Under Solvency II companies can either. Internal model may refer to: Mental model, a representation of reality within the mind of an individual. Internal model principle, an application of the good regulator theorem to the control of systems described by ordinary differential equations. Disambiguation icon. Disambiguation page providing links to articles with similar.