REGULATORY REPORTING EXPERTS

SST — Solvency supervision toolbox

solution for automated Solvency II supervision for more efficient market scrutiny

About Supervision in EU (Solvency II)...

Since implementation of Solvency in its first version, Directive framework hasn’t changed much, not closely as EU market, a market that traditionally is highly regulated. Fact that framework is pretty much the same as it was in 70's of last century speaks for itself. Market volatility and still undergoing crisis has led to revision of current regulatory framework aiming at building framework for efficient market scrutiny – Solvency II. In November 2009. Solvency II Directive was adopted by the Council of the EU and the EP. Its revisions are expected by the OMNIBUS II Directive.

Solvency II aims at protecting policy holders and economy at large, directive brings risk soundness model and stricter rules for reporting through implementation of XBRL technology. Undergoing changes, and new technology will lead to more efficient market supervision. Old regulatory framework and old technology are inadequate for today’s market.

NCA’s are transitioning from strict control rules to completely different control approach – a dynamic risk soundness model where they need to understand specific operating market, undertaker business position and risk profile, put those parameters into new legislation and practice Solvency II so they could be able to conduct appropriate control. For easier transition and appropriate scrutiny they need to focus on dynamic risk models and stress test scenarios implementation for stressing key risk factors aiming at optimal problem resolution. With our SST solution supervisory agencies can address those issues in more efficient manner and focus more on dynamic control while SST handles complex technology with same end goal – safer market.

Why SST?

SST is among few solutions in EU market that are out-of-the-box solutions. It implements cutting edge XBRL M3N® processing technology for fast visualisation, mapping and validation of XBRL instances. SST automates supervision process in terms of collection, validation and sending responses to received XBRL instances through prebuilt service protocol. Automation is achieved through IO communication service that has workflow definition and predefined validation acknowledgment messages to automatically collected and validated XBRL instances. Besides outlined functionalities SST addresses reporting in second level to EIOPA.

Simple and automated handling of XBRL reporting instances and centralized data model enabled by taxonomy data point model (DPM) enables NCA’s to perform ad-hoc analysis or implement various stress test scenarios aimed at optimal end efficient undertaker’s control. SST saves resources in both time and costs means giving supervisory needed time to make effective transition to completely new control model in today’s dynamic market.

Highlighted functionalities

  • Collection, validation and responding to received instances
  • Approval/rejection of instances with comments
  • Data visualisation and user friendly XBRL error signing
  • Cutting edge XBRL M3N® technology
  • Reporting in second level
  • IO automation protocol for automated collection and responding to instances
  • Business and rights workflow
  • Taxonomy, undertakers and user management

Bottom line effects

Optimized and automated supervision process
Shorten control time
Savings in both costs and resources
Safer market

Solvency II application starts from January 1st 2016. Data collected in harmonized manner will enhance advanced analytical capabilities. NCA’s that request XBRL from undertakers can focus more efficiently on market scrutiny.

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