First Steps for Unstructured Data in Solvency II

Print Version

Solvency II significantly increases many management challenges for the insurance industry, including financial modelling, governance and auditability, as well as all actuarial and data functions in general. Data quality must be consistently high across the organisation, and readily available for solvency calculations and disclosure of decisions made. Speed and accuracy will be essential to avoid business becoming stalled by the new demands.

Businesses face particular problems in accelerating and validating the complex risk modelling completed within actuarial departments. Actuarial analysis and reporting platforms such as Towers Watson MoSes, Sungard Prophet and EMB Igloo provide an excellent step forward. However, even this improved environment will inevitably be supported by a range of spreadsheets for both manipulating input data, collating assumptions and completing financial reporting. Without automating the integrity of these supplemental ‘end-user’ applications there is a danger that many potential benefits from business transformation will be lost.

ClusterSeven’s software complements, accelerates and sustains your transformation to Solvency II by:

  1. Delivering a clear business case and road map for Solvency II transformation by rapidly mapping the current usage and data flows within your spreadsheets, MS Access databases.

  2. Providing automated risk assessment of your entire spreadsheet inventory to prioritise conversion to robust platforms.

  3. Maintaining transparency over information (such as business assumptions) that will continue to be collated in spreadsheets. This includes a centralised, tamper-proof audit trail and a structured data-warehouse for business trend analysis.

  4. Enabling automated validation of information collated in spreadsheets to ensure that data imported into platforms such as MoSes is error-free.

  5. Eliminating inefficient manual processes that consume the valuable time of actuaries and financial control. This shortens reporting cycles and eliminates many opportunities for error.

  6. Supporting the establishment of consistent best practices, such as the quality of VBA code.

  7. Enabling automated reconciliations between data held in spreadsheets, MoSes, Igloo and other financial systems to detect anomalies such as stale, incomplete or erroneous data.

Print Version

"Solvency II is not just about capital, it is a change of behaviour"

Thomas Steffen, Chairman of CEIOPS

The 3 Pillars of Solvency II

1. Capital Requirements

  • Access to data
  • Flexibility of modelling and approach for internal models
  • 2. Qualitative Requirements

  • Enhanced governance and controls
  • Repeatable ORSA (Own Risk and Solvency Assessment) based on various criteria
  • 3. Disclosure Requirements

  • Transparency of information
  • Transparency of information flows leading to decisions made