Solvency II Reporting
Solvency II regulatory requirements are designed to unify the fragmented European Economic Area (EEA) insurance market and enhance consumer protection.
The Solvency II requirements are issued by one of three European Supervisory Authorities, EIOPA, the European Insurance and Occupational Pensions Authority, an independent advisory body to the European Parliament and the Council of the European Union. Compliance with Solvency II is not a requirement for Europe only, as groups operating outside the EEA have to apply the same rules to their subsidiaries.
While creating a Solvency II program to fit any insurance organization requires coordination throughout the entire process, the individual requirements of each Pillar determine a clear categorization of responsibilities within an insurance firm. When fitting the pieces together, a company can truly benefit from a well-structured approach to Solvency II compliance.
Through our worldwide and vast experience of regulatory reporting, data management and risk management Wolters Kluwer Financial Services provides solutions and tools that help companies meet the Solvency II reporting requirements, addressing both internal and external needs.
Wolters Kluwer Financial Services’ Solvency II solution enables insurers to manage the entire Solvency II reporting program, addressing multi-country requirements, providing structured, centralized data models and software tools, while managing the end-to-end reporting process.
Solvency II reporting as a process
Building on our experience as leaders in regulatory reporting, our Solvency II capabilities have been developed to enable insurance firms to implement with ease a robust automated reporting system which seamlessly integrates with any existing infrastructure.
Our modular approach to meeting Solvency II requirements allows firms to implement only the components required today, setting a solid foundation, saving investment in infrastructure and making the most of firms’ existing systems.
The reporting templates included with our Solvency II solution are populated with the relevant data from the single repository and processed by our leading reporting engine. With our solution firms can integrate results from internal models or simplified approaches, or can calculate the solvency capital requirements (SCR), minimum capital requirements (MCR) and risk margins based on the standard approach.
Firms can be certain that their data is accurate straight through to the reporting requirements, as our solution removes all the complexity from this process. The final reports are delivered to the regulator in the required format (including XBRL), and together with the underlying data, they are archived for future use.
Insurance data management
Achieving the “single view of the truth” poses challenges of organizational, financial, political and human nature. Data management represents the end-to-end data lifecycle management of an insurer from data collection, to validation, integration, analysis, reporting and auditing, the lifeblood of a well-informed business decision process fulfilment.
At the centre of the data integration lays a set of complex business rules that transforms the various data formats from multiple sources into new information of business value.
Wolters Kluwer Financial Services’ Solvency II solution captures data from multiple sources then consolidates and standardizes it into a single repository, offering full transparency throughout the process. All adjustments to the reports or to the underlying data are logged, so that full auditability, transparency and accountability are assured.
An integrated data management approach is farther reaching than basic decisions at local level allowing insurers to manage the operational risk and regulatory compliance, implement new business strategies, manage the performance and optimize the operations across the business.
Regulatory Update Services
Our Solvency II reporting solution has multi-country capabilities and is kept up-to-date with regulatory changes via the Regulatory Update Service (RUS). This service makes sure that the regulatory reports include the latest requirements for all the countries supported, within the product subscription.
The Solvency II reporting solution enables insurance firms to receive:
- Regulatory updates that align firms with the changes in the reporting requirements as stipulated by the regulators
- Integrated and automated Solvency II reporting (based on EIOPA templates)
- End-to-end auditing capabilities with drill-up and drill-down underlying data
- Workflow management
- State of the art report building and dashboard technology that enables internal teams to develop and view reports wherever, whenever and however they are needed. Expert consultants
Our team of expert consultants provides the knowledge that fully supports both the regulatory reporting and disclosure requirements of Solvency II with complete data integration capabilities.
With a comprehensive understanding of the insurance risk and compliance regulation, we assist firms in calculating and reporting on their SCR and MCR, as well as other Solvency II disclosures and reporting needs including the Quantitative Reporting Templates (QRTs), Report to Supervisors (RTSs) and Solvency and Financial Condition Reports (SFCRs). Our consultants work with firms who elect to submit the SCR and MCR using the standard formula, those who have chosen the internal model or the partial internal model.