Solvency II & the QIS5 Spreadsheet

CEIOPS has published the main spreadsheet to be used in submissions for the fifth quantitative impact study (QIS5). Solo entities must complete it by October 2010 and groups have until November 2010. One of the key objectives is to encourage insurers to prepare for the introduction of Solvency II and to identify areas were their internal process may need to be enhanced – particularly data collection.

The repeated collection and verification of the QIS5 information presents many continuing challenges, symptomatic of underlying data management problems. The following table shows how ClusterSeven can assist with the QIS5 process, as a starting point for better spreadsheet control:

Challenge	ClusterSeven	Solution
Understanding the structure and data flows in the QIS5 spreadsheet		Automated analysis as seen in the diagram above
Tracking business changes to the QIS5 spreadsheet before final submission		Automated monitoring, auditing and location of changes
Preventing unauthorized or accidental changes to QIS5 spreadsheet		Automated reporting of anomalous changes - such as changes to protected content
Accelerating the speed and reducing the cost of data collection		Selective distribution of data entry tables to specific individuals
Verification and approval of changes to QIS5 spreadsheet		Multi-level sign off capability

Print Version

Insurance Specific Value

• MAP implements ClusterSeven
• Canopius implements ClusterSeven
• US - NAIC Model Audit Rule
• EU - Sol II - FSA External Review / Data Audit
• EU - Sol II - First Steps
• EU - Sol II - Documentation
• EU - Sol II - Data & Use Test
• EU - Sol II - QIS5 Spreadsheet
• Data Validation for Global Insurer
• Financial Reporting for CFOs

"[A high participation rate for QIS5] is a key factor to ensure that current options tested under QIS5 are properly taken forward."

Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS)

"I still see audit reports or project plans that recommend replacing spreadsheets and manual processes with an ‘IT solution’. This will never happen. It is impractical to replace 2 or more fragmented systems with a single system. Replacing the spreadsheet operations with ‘IT designed’ ones only compounds the problem and removes any ability of users to address problems. The only ‘solution’ is to eliminate the worst processes, and to apply appropriate controls to the ones that remain."

Dean Buckner, FSA