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Solvency II Overview
AxiomSL, the global leader in capital adequacy calculation, regulatory reporting solutions and risk management for over 20 years, provides a comprehensive data management framework, which delivers flexibility and scalability in merging clients’ data models while delivering data transformation, calculation and reporting processes with transparency. The fully integrated platform allows for consolidation of disparate data sources, automation of controls and standardization of processes, which provides strategic insights to financial institutions for enhancing business decisions and ensure a higher standard of integrity.
Quickly implemented and tailored to suit clients business operating models to meet tight submission timelines, AxiomSL’s solution delivers transparent and efficient management of data sources, enterprise data models, business rules and logic, calculations, workflows, reports and submissions. With new regulations ahead, insurers will need to review and validate their data integrity, GAAP or IFRS balance sheet figures, and risk exposure calculation results for submission to regulators. Larger insurance firm with entities in different countries will be required to report to multiple regulators and those firms with syndicates in the Lloyds market will be required to report in Lloyd’s specific Solvency II report formats.
AxiomSL’s modules deliver data quality, standard SII calculations, and SII reporting (for all EIOPA regulated NCAs and the Lloyds market). AxiomSL’s integrated regulatory platform interfaces with insurers existing data structure without any data conversion and enables clients to enhance compliance reporting efficiency, improve the monitoring of processes, collect consistent & harmonized data and achieve economies of scale in addressing both internal and external requirements. Further, AxiomSL’s solution seamlessly embeds XBRL application to meet the required mandates.
Insurers will face a plethora of regulations between now and 2015 and to control regulatory compliance costs, a holistic data driven transparent regulatory solution is the answer. AxiomSL’s robust technology solution provides a platform meeting SII reporting and evolving regulatory reforms like European Market Infrastructure Reporting, Market Consistent Embedded Value (MCEV) and International Financial Reporting Standards (IFRS) Phase II. It is essential that insurance companies stop addressing these initiatives with point solutions as it results in a waste of time, money and resources.
Solvency II Benefits
Ensure complete transparency, traceability with an audit trail and interface with clients’ systems and workflows without any data conversion.
Aggregate, map and consolidate data to meet reporting accuracy requirements and validation process;
Streamline and automate reporting processes;
Meet transparency reporting requirements across multiple regulators and jurisdictions on one platform;
Adapt quickly to internal data adjustments and evolving regulatory requirements;
Consolidate information from disparate data sources and multiple locations;
Solvency II Features
Single platform which centralizes all information, eliminates manual workarounds, redundant activities and reduces operational costs;
Open and transparent platform which allows for simplified & standardized processes with a complete audit trail;
Data-driven platform that covers all jurisdictions and multiple regulatory mandates not just Solvency II;
Fully functional reporting solution providing fully customizable flash, management and adhoc reporting;
Fully integrated solution from data sourcing to final reports including XBRL submission.
Flexible web-dashboard which allows senior management quick insight for key deliverables, dates and information as a valuable input in major business decisions;
Dynamic data warehouse ensures support for assets and liabilities from any source and any client data structure;
Support for all EIOPA regulated NCAs as well as Lloyds market ensures truly global reporting platform meeting local needs;
Robust data quality visual business rules ensures business and IT higher confidence in data reported throughout the process;
Full set of standard Solvency II calculations to accommodate non-internal model firms or products that don’t fit in approved internal model structures;
Extensive experience in reporting; currently supporting over one thousand regulatory reports and tax returns across multiple jurisdictions and regulators on a single platform;
Solvency II Background
Dodd-Frank Section 7 will bring a comprehensive regulatory framework which will include swaps for the first time. Dodd-Frank Act was enacted to: a) reduce systemic risk, b) increase transparency and c) promote market integrity within the financial system.
Financial regulations continue to increase and meeting their evolving requirements has become a real challenge for insurance firms. As key regulations have been delayed, firms might be tempted to adopt a patchwork of tactical, silo-based systems and tools to comply with immediate regulatory needs and discover at a later stage that these solutions do not meet ever changing regulatory demands. When in place, the Solvency II (SII) directive will require internal controls for each step of data processing, risk calculation, and reporting that will demand a robust, flexible calculation and reporting solution. Solutions adopted now should provide the necessary control and integration to accommodate the entire Solvency II process in the future.
Insurance firms’ efforts to comply with SII, European Market Infrastructure Reporting (EMIR), Market Consistent Embedded Value (MCEV) or the International Financial Reporting Standards (IFRS) Phase II, insurance companies, will require:
- Strengthening communication among departments, resulting in an integrated approach to quickly adapt to changes in both external regulatory reporting and internal MIS and workflows.
- Concentrating on identifying and implementing solutions that will improve their business performance.
The entire SII and other regulatory calculation and reporting process need to be transparent to both company and regulators. To meet upcoming regulations, insurers need a robust risk-based capital regulatory framework combined with a flexible reporting solution to give insurance risk professionals the tools they need to confidently aggregate, monitor and report to regulators. AxiomSL’s solution provides transparency, control, and delivers consistent information throughout the entire regulatory reporting processes.
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