solvency ii: how to reduce the cost, burden and data quality risk … · 2018-01-02 · solvency....
TRANSCRIPT
Solvency II: How to reduce the cost, burden and data quality risk of regulatory reporting
Gideon BenariEditor and owner of
Solvency II [email protected]
Ed KennedyFinancial Services Market
Manager, EMEA, [email protected]
Colin HudsonSenior Sales Engineer,
Speakers
Simon DuttaMeeting Chair
QuestionsPlease type anyquestions you have here.
They will be answered at the end of the presentation.
Regulatory change landscape
Defining data quality & XBRL
Q&A
Defining cost burden &risks associated to regulatory reporting
Regulatory reporting process – QRTs
SFCR processes & attaining value from this data
Agenda
About Solvency II WireSolvency II Wire informs and influences the insurance industry:
5,300monthly visitors
1,300email subscriberswww.solvencyiiwire.com
happening in the development and implementation of Solvency II.“ ”Prof. Karel Van Hulle, former Head of Insurance & Pensions Unit, European Commission
63%46%of readers say that Solvency II Wire influences their business decisions
of readers say that Solvency II Wire offers information that they can’t find elsewhere
Very few information sources have been so close to what is really
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.
3,300+Solvency II compliant insurers monitored for updates
1,800+ QRTs in the database
SCR coverage ratio distribution
0%
200%
400%
600%
800%
1000% c. 1700 solo insurers
Regulatory landscape
• Brexit
• Solvency II reviews 2018 & 2021
• Reporting & disclosures
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
Solvency II regulatory reporting
2016 - 2019 2019 onwards
Report Solo Group Solo Group
QuarterlyPrivate:QRTs
2016, 8 weeks2017, 7 weeks2018, 6 weeks2019, 5 weeks
2016, 14 weeks2017, 13 weeks2018, 12 weeks2019, 11 weeks
5 weeks 11 weeks
AnnualPublic:
QRTs, SFCRPrivate:
NSTs, RSR
2016, 20 weeks2017, 18 weeks2018, 16 weeks2019, 14 weeks
2016, 26 weeks2017, 24 weeks2018, 22 weeks2019, 20 weeks
14 weeks 20 weeks
Financial StabilityPrivate:
Quarterly, semi-annual & annual
2016, 10 weeks2017, 9 weeks2018, 8 weeks2019, 7 weeks
2016, 10 weeks2017, 9 weeks2018, 8 weeks2019, 7 weeks
7 weeks 7 weeks
About CoreFiling
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
What filers see: Post-close process
SubmissionDate
Account Close
Review Balance Sheet: Stat’ & Reg’
Allocate Source Data(excl. Look-through)
Approve Balance Sheets
Look Through Data availability from TPA
Apply validations & remediate
Allocate Data to QRT’s & Assign work
Final Review & Approve: CFO & CRO
What your regulator seesLate
submissionFirm 1
Submissionwith
consistently inaccurate data
Firm 3
Submissionconflicts with prior
filing –re-submission
requiredFirm 4
Late submissionw/ multiple attempts
Firm 2
Defining cost burden & risks
CostsRisks Impact
Productivity Loss
Business
Investment Impact
Internal Costs:
People
Time
Operational
BAU Disruption
Regulatory
Regulatory
Budget
Capital Add-ons
Model Impacts
Consulting
External Costs:
Mitigating cost burden & risks
• Submit reports on time
• Right first time
• Business & QA approval
Embed high data quality throughout the reporting process
Cost & risk = data quality
Data Quality Measure Description Basic ExampleConsistency Tests facts are consistent UK equities in £GBP values
Conformance Does the data conform to the standards (XBRL)? Currency stated @‘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
Source Systems Reporting ToolETLData XBRL
Regulator
Reporting process - data flows
ORSA - RSR -SFRC
Source Systems Reporting ToolETLData XBRL
Regulator
Data Quality: Points of concern
ORSA - RSR -SFRC
Data Modellig
XBRLProcessor
Consolidation System
Source Systems
XBRLValidations Data
XBRL
XBRL
Reviewed
Excel C S V
XBRLRegulator
Data quality - assurance maturity
Data
XBRLValidations Data
Assurance maturity
Data Modellig
XBRLProcessor
Consolidation System
Source S ystems
XBRL
XBRLReviewed
Excel C S V
XBRLRegulator
DATA
Beacon Demo
Solvency II disclosures data quality
All SFCRs
Bad Visibility
No C/R Numbers
No QRTs
Data quality c.2500 SFCR reports
Typical errors in public disclosuresOn screen validation
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)
Q&A
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