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Tagetik Solvency II introduction


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Tagetik Solvency II introduction

In this presentation you will find the answers to the common challanges with the

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Tagetik Solvency II introduction

  2. 2. Background Solvency II Reporting Challenges Tagetik Solvency II Solution The Tagetik Difference Tagetik in Action Agenda
  3. 3. • EU Directive to codify and standardize insurance regulations • Define amount of capital EU insurance companies must hold to reduce risk of insolvency • A single regulation to enhance consumer protection • Similar to Basel III for Banks • Will come into effect on January 1, 2016 • Impacts all insurance companies with EU operations Solvency II Background Solvency II Turning significant change into competitive gain
  4. 4. Solvency II: The 3 Pillars • Non life underwriting • Life underwriting • Special health underwriting • Interest rate • Market • Operational • Concentration QUANTITATIVE REQUIREMENTS Balance sheet evaluation Solvency Capital Requirement (SCR) Minimum Capital Requirements (MCR) QUALITATIVE REQUIREMENTS & SUPERVISION System of Governance Own risk & solvency assessment (ORSA) Supervisory Review process (SRP) DISCLOSURE REQUIREMENTS Public disclosure of FCSR (Financial Condition and Solvency Reports) RSR (Common Supervisory Reporting) Pillar I Pillar II Pillar III Risk
  5. 5. Solvency II: Law Requirements and Deadlines 2009 2010 2011 2012 2013-14 2015-16 Framework Directive (L1) Definition of principles for the solvency system Implementing Measuring (L2) Regulation adoption (Dir. SII) Supervisory standards (L3) Guidelines to guarantee a convergent application and implementation of regulations Regulation transposition by national authorities 2016 Solvency II enforcement Directive Development Directive Adoption Council & Parliament Implementation Member States QIS5 1° Tagetik POC Tagetik Pre-packaged solution Tagetik Maintenance Service
  6. 6. Solvency II: Reporting and Compliance Challenges • Data Integration and Quality • Complexity of Calculations • Changing Regulatory Requirements • Creating and Maintaining Governance Processes • Differing Financial vs. Management Reporting and Disclosure Requirements • Reconciling Different Reporting Formats • Ensuring Adequate Audit Trails and Controls Solvency II
  7. 7. Solvency II: Reporting Challenges Source: KPMG Solvency I Regulatory Requirements Solvency II Regulatory Requirements Solvency III Management Model Surplus Capital Technical Provisions Surplus Capital Capital Add-on SCR MCR Margin Best Estimate of Liabilities Surplus Capital IECR Margin Best Estimate of Liabilities 3 2 1 3 2 1a 1b Standard SCR Adjusted SCRMGF RMM 1. Technical provisions to match insurers’ liabilities a) Best estimate of liabilities b) Market Value Margin 2. Regulatory capital requirements 3. Capital held in excess of regulatory capital requirements
  8. 8. Solvency II: State of Readiness in Europe Figure 1: European Solvency II readiness 60% 50% 40% 30% 20% 10% 0% Already compliant In the course of 2014 In the course of 2015 In the course of 2016 In the course of 2017 Later 2% 56% 20% 32% 58% 11% 19% 1% 1% 2013 2012 Figure 2: Overall implementation status by pillar 2012 2013 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Pillar 1 Pillar 2 Pillar 3 1. The requirements are not met 2. Some of the requirements are met 3. Most of the requirements are met 4. All of the requirements are met 5. The company already goes beyond the Solvency II requirements Overall, the insurance industry is on track to implement Solvency II by 1 January 2016; however, a significant amount of work is needed between now and then to address preparedness across all three pillars. Source: E&Y European Solvency II Survey 2014
  9. 9. “With Tagetik’s solution in place, TVM is proud to be the first European insurance company with an integrated and standardized statutory and Solvency II-compliant reporting processes.” Emile Kaal, Finance directorTVM Leading the Way to Solvency II Compliance
  10. 10. The Tagetik Solution: Pre-packaged Solution for Solvency II Pre-built complete set of accounts, data entry forms, reports, diagnostic checks, calculation rules, narrative templates and XBRL output to satisfy the EIOPA requirements for Solvency II Tagetik offers a service package to maintain alignment with changes to EIOPA regulations Tagetik distributors and partners offer a service to maintain national specific requirements Compliance now, compliance in the future
  11. 11. What does the pre-packaged solution cover? Solvency II Pre-Packaged Solution Scope Pillar I Pre-packaged calculations to cover standard formulas Pillar II Expected Solvency position & ORSA narrative elements Pillar III 100% coverage EIOPA Requirements with QRT, FCSR and RSR
  12. 12. Tagetik: The Unified Approach to Solvency II Create a foundation of reliable, traceable data Loading and mapping from internal/external data sources Data collection and consolidation Workflow SCR and MCR Calculation Integration with financial data Data validation As the basis for all reporting and disclosure requirements Financial Reporting Management Reporting Dashboards Disclosure Management XBRL output Integration with SharePoint
  13. 13. datamodel TVM fase 1 Mgt. Reporting QRT’s, XBRL, Narratives General ledger Tagetik Solvency II pre-packaged solution Tagetik Financial Statements Data model & calculations Solvency II pre-packaged solution Local SII require-ments QRT source data Pillar 1 source data Inputs Outputs ETL Customer Data Model Tagetik Solvency II Architecture
  14. 14. • All QRTs • Annual • Quarterly, • Group, • Solo • Data-checks and log-files • Templates for RSR/ SFCR • Updates from EIOPA • XBRL output • Documentation Pre-packaged Tagetik application with all building blocks Tagetik Solvency II Solution Components
  15. 15. The Tagetik Difference
  16. 16. Tagetik “Full Service” Solvency II Reporting • Built-in intelligence • Pre-built calcs and reports • Workflow and validation • Project consulting • Technical consulting • Check-up consulting • Training and support • Regulatory updates
  17. 17. Achieve fast Solvency II compliance with our Pre-packaged application and flexible customizations Streamline your data generation, consolidation, reporting and disclosure processes to save time, effort and costs each step of the way Stay aligned with changing regulations with regular Pre- packaged application maintenance Benefit from Tagetik’s rich project experience in the European financial services sector Unify financial, management and regulatory reporting as well as other CPM processes in a single product Tagetik: One Solution for Solvency II Solution Benefits Tagetik provides an excellent audit trail. TVM can now easily trace and show the adjustments that derive statutory consolidation and Solvency II reporting from one source. Auke Jan Hulsker Sofia Consulting
  18. 18. Tagetik: One Solution for Solvency II and Beyond XBRL IFRS 4 Regional Disclosures Financial Statements Board Books Future Regulations
  19. 19. A Single Platform for Multiple Reporting and Performance Management Needs IFRS Group Financial Statement Consolidation MVBS – Market Value Balance Sheet Consolidation Own Funds (OF) Quantitative Reporting Templates (QRTs) Regular Supervisory Reporting (RSR) Solvency & Financial Condition Report (SFCR) Process Details Actual / Monthly Reporting Forecast Planning IFRS Consolidation MVBS Solvency II Reporting Planning & Forecasting
  20. 20. Many Insurers Trust Tagetik for Solvency II
  21. 21. The Company: TVM Founded in 1962, 400 full-time employees Netherlands-based; offices in Belgium, France, Germany Transportation Insurance Project Scope Results/Benefits • Local close • Align processes to simultaneously address statutory, Solvency II and management reporting • Automate consolidation and reporting environment for 30 separate company entities • Create a single solution for data collection and storage, entry forms, consolidation, reporting • Provide built-in financial controls and validations, with full traceability and transparent audit trails • Automated Solvency II Pillar 3 calculations and reports • Meet Solvency II requirements in parallel with statutory reporting, interco elim, and fast close • First European insurance company to standardize statutory and Solvency II-compliant reporting • Simple and cost effective solution for meeting the reporting requirements of Solvency II • Automated process consumes fewer resources
  22. 22. The Company: Gruppo Credem Listed on Italian stock exchange since October 1997 Headquarters in Reggio Emilia, Italy Commercial Banking, Insurance, Asset Management • Cover Solvency II P2-P3 and local requirements • Single-product to manage supervisory reporting, planning & budgeting and more • Enterprise Data Warehouse to support new infrastructure, integrate with P1 calculation engines • Reduce operating risk • Enhance information quality, efficiency, availability • Enable users independence • Single platform for multiple requirements: reporting, budgeting, planning etc. • Full compliance with Solvency II P2 and P3 • Complete auditability for Solvency II processes and data changes throughout the process • Collaborative reporting on P2, integrated with DWH • Greater analysis capability for CFO and quicker answers for CEO • Better business management capabilities for Board Project Scope Results/Benefits
  23. 23. The Company: Talanx AG Headquarters in Germany, operating in 150 countries 22,200 Employees Worldwide Global B2B Insurance Focus • Meet Solvency II P3 reporting requirements in Q1 2014 • Implement a single solution for solo/group reporting • Functional guidance and support for local Pillar 3 • Coordination and synchronization of parallel projects Support of the standard formulas for Pillar 1 • Pillar 3 reporting must consider the public and capital market perception – i.e. the Solvency Financial Condition Report (SFCR) • Tagetik selected since it was already successfully used for IFRS reporting • Solvency II solution supports all Pillar 3 reporting requirements • Single software tool for solo/entity and group reporting and provides support for standard formulas Project Scope Results/Benefits
  24. 24. Demo Tagetik in action
  25. 25. • Solvency II deadline is approaching quickly • Tagetik is a leader in Solvency II solutions • Achieve compliance fast and compliance that will last • Leverage the success of other leading insurance companies • Stay ahead of changing regulations and much more • For more information: Why Tagetik for Solvency II? Why Now?
  26. 26. Thanks Stellan Rosman Customer Solution Manager Tagetik Nordic