Solvency II: How to reduce the cost, burden and data quality risk of regulatory reporting

Transcription

1 Solvency II: How to reduce the cost, burden and data quality risk of regulatory reporting

2 Speakers Gideon Benari Editor and owner of Solvency II Wire Ed Kennedy Financial Services Market Manager, EMEA, CoreFiling Colin Hudson Senior Sales Engineer, CoreFiling Simon Dutta Meeting Chair

3 Questions Please type any questions you have here. They will be answered at the end of the presentation.

4 Agenda Regulatory change landscape Defining cost burden & risks associated to regulatory reporting Defining data quality & XBRL Regulatory reporting process QRTs SFCR processes & attaining value from this data Q&A

5 About Solvency II Wire Solvency II Wire informs and influences the insurance industry: 46% of readers say that Solvency II Wire influences their business decisions 63% of readers say that Solvency II Wire offers information that they can t find elsewhere 5,300 monthly visitors 1,300 subscribers Very few information sources have been so close to what is really happening in the development and implementation of Solvency II. Prof. Karel Van Hulle, former Head of Insurance & Pensions Unit, European Commission

6 About Solvency II Wire Data Solvency II Wire Data is a simple and powerful tool for analysis of the Solvency II public disclosures across Europe. Solvency II compliant 3,300+ insurers monitored 1,800+ for updates QRTs in the database

7 SCR coverage ratio distribution 1000% 800% 600% 400% 200% 0% c solo insurers

8 Regulatory landscape Brexit Solvency II reviews 2018 & 2021 Reporting & disclosures

9 Regulatory change reporting EIOPA V2.2 Solvency II XBRL Taxonomy (For 2017 Q4 data) Shortened reporting cycles by 2019: Quarterly Reporting: from 8 to 5 weeks from quarter end Annual Reporting: from 20 to 14 weeks from year end

10 Solvency II regulatory reporting onwards Report Solo Group Solo Group Quarterly Private: QRTs 2016, 8 weeks 2017, 7 weeks 2018, 6 weeks 2019, 5 weeks 2016, 14 weeks 2017, 13 weeks 2018, 12 weeks 2019, 11 weeks 5 weeks 11 weeks Annual Public: QRTs, SFCR Private: NSTs, RSR 2016, 20 weeks 2017, 18 weeks 2018, 16 weeks 2019, 14 weeks 2016, 26 weeks 2017, 24 weeks 2018, 22 weeks 2019, 20 weeks 14 weeks 20 weeks Financial Stability Private: Quarterly, semi-annual & annual 2016, 10 weeks 2017, 9 weeks 2018, 8 weeks 2019, 7 weeks 2016, 10 weeks 2017, 9 weeks 2018, 8 weeks 2019, 7 weeks 7 weeks 7 weeks

11 About CoreFiling

12 Commercial off-the-shelf' XBRL software Mature and reliable Covers entire market Ready to go Provide continuous XBRL expertise to customers Expertise in Solvency II filing (filers and regulators) Many XBRL subject matter experts Experience from multiple regulatory XBRL projects, including the Bank of England Managing the market and expectations Business focused solutions

13 What filers see: Post-close process Account Submission Close Date Allocate Source Data (excl. Look-through) Look Through Data availability from TPA Allocate Data to QRT s & Assign work Final Review & Approve: CFO & CRO Review Balance Sheet: Stat & Reg Approve Balance Sheets Apply validations & remediate

14 What your regulator sees Late submission Firm 1 Late submission w/ multiple attempts Firm 2 Submission with consistently inaccurate data Firm 3 Submission conflicts with prior filing re-submission required Firm 4

15 Defining cost burden & risks Costs Risks Impact Internal Costs: People Time Operational BAU Disruption Productivity Loss External Costs: Capital Add-ons Model Impacts Consulting Regulatory Regulatory Budget Business Investment Impact

16 Mitigating cost burden & risks Submit reports on time Right first time Business & QA approval Embed high data quality throughout the reporting process

17 Cost & risk = data quality Data Quality Measure Description Basic Example Consistency Tests facts are consistent UK equities in GBP values Conformance Does the data conform to the standards (XBRL)? Currency Euro not Euro Accuracy SME review & executive a pproval SMIR Completeness All required data is reported LEI codes unavailable reported as None not blank cells Uniqueness Entities or attributes unique within the report LEI codes Persistence Data can be viewed at anytime with context XBRL instance & associated taxonomy defintions

18 Reporting process - data flows Source Systems Data ETL Reporting Tool XBRL Regulator ORSA - RSR - SFRC

19 Data Quality: Points of concern Source Systems Data ETL Reporting Tool XBRL Regulator ORSA - RSR - SFRC

20 Data quality - assurance maturity Data Modellig Source Systems Data XBRL Processor Excel CSV XBRL Consolidation System XBRL Regulator XBRL Reviewed XBRL Validations Data

21 Assurance maturity Data Modellig Source S ystems DATA XBRL Processor Excel CSV XBRL Consolidation System XBRL Regulator XBRL Reviewed XBRL Validations Data

22 Beacon Demo

23 Solvency II disclosures data quality Data quality c.2500 SFCR reports All SFCRs Bad Visibility No C/R Numbers No QRTs

24 Typical errors in public disclosures On screen validation

25 Typical errors in public disclosures Totals not adding up Missing data cells Entire templates missing data Values not matching across cells Difficult to determine reporting units Different reporting units across templates in same report Template modified (rows deleted)

26 Q&A

27 Thank you! Please visit to try Beacon for free Contact us:

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