FRSGlobal

Solvency II

Creating a Solvency II programme to fit your organisation requires coordination throughout the entire Solvency II process. Whilst separating individual requirements into the three Pillars allows an insurance company to clearly categorise the responsibilities, it is only when all the pieces are fit together does a company benefit from a well structured and implemented practice.

Wolters Kluwer Financial Services (WKFS) Solvency II solution, is just that, a solution for Solvency II. It does not simply cover Pillar 1, or elements of Pillar 3. Our solution fits your Solvency II needs regardless of where you are in the process. Through our worldwide and vast experience of regulatory reporting, data management, risk management with advance analytical models, we provide solutions and tools that help companies meeting their Solvency II regulatory requirements and also satisfy, where necessary, the regulatory needs of the National authorities.

Not a One Size Fits All Solution

What separates Wolters Kluwer Financial Services from other providers is our modular approach. Whilst a number of companies focus on a pillar by pillar approach only our Solvency II solutions can address a company’s needs across the enterprise — providing a solution for financial calculations, operational risk management, statutory and senior management reporting all woven together to create a holistic solution — or can be delivered separately working with existing processes matching a company’s unique structure.

Calculations and Reporting

Our approach is to ensure that each Pillar rest securely on a solid foundation. The decision a firm makes on how it calculates and assesses the capital requirement has a direct impact on its ability to address other requirements. Capturing data consistently throughout the process, our unique risk and regulatory database uses a fully integrated and automated reporting solution with a regulatory update service. Insurance firms can calculate the solvency capital requirements (SCR), and minimum capital requirements (MCR) and the risk margin based on the standard approach and/or integrates results from internal models or simplified approaches at a granular level and be certain that they data is accurate straight through to the reporting requirements.

Either using our calculation solution or leveraging an existing process our reporting solution, coupled with our regulatory update service, takes on the burden of ensuring forms and content are always kept up to date, enabling firms to remain compliant.

The Regulatory Reporting Module enables finance and reporting departments to receive:

• Regulatory updates that protect your firm from changes in the reporting requirements as stipulated by the regulators
• Integrated and automated Solvency II reporting (based on EIOPA templates)
• Consistent and validated data stored in data foundation which can be leveraged for internal and external risk information and reporting

Risk Management

Our comprehensive market risk, credit risk, insurance and operational risk solutions assists firms in calculating and report their SCR and MCR together with other reports that will be required as part of the solvency II Disclosures and Reporting. Including the Quantitative Reporting Templates (QRT), Report to Supervisors (RTS) and Solvency and Financial Condition Report (SFCR). Our solvency solutions work seamlessly with firms who elect to summit the SCR and MCR using the standard formula, those who have chosen the Internal Model or a combination of both the Partial model.

Our Risk Modules include:

• Market risk module Assess and measures market risk (currency risk, interest rate risk, equity risk, property risk, spread risk, volatility risk) in respect to value and income in static and dynamic analysis.
• Credit risk module Measures counterparty default risk (Credit Exposure, Credit loss, Credit portfolio risk) in respect to value and income in static and dynamic analysis.
• Liquidity risk module Evaluates liquidity risk (liquidity gap, contingent liquidity gap, forward liquidity gap, dynamic liquidity gap) in order to analyse anticipated cash flows in static and dynamic analysis.
• Insurance risk (Non-Life) module Measures Non-Life insurance risk using a partial claims reserving model incorporating severity, frequency and reporting time based on a variety of distribution functions. The module allows an organisation to calculate the Solvency II requirements for premium/reserve and catastrophe risk and can be used as a building block for an internal model.

Each of the risk modules use standard and advance analytics to provide a clear view into the financial risk a firm faces. In addition to satisfying the regulatory need outlined in Pillar II, the risk modules can be integrated into our Regulatory Reporting Module for Pillar I for firms utilising internal calculation models.

For more information on how Wolters Kluwer Financial Services FRSGlobal helps insurance firms build an integrated Solvency II programme please contact us.