Solvency II The Practicalities Around Programme  Governance & Data
Gain-Line & Solvency II Solvency II is the biggest ever exercise in bringing together insurers and re-insurers under one r...
Who Are Gain-Line The Gain-Line Group is a consortium of specialist companies who have come together to deliver a solution...
Gain-Line & Solvency II Solvency II Programme Slide  There are many stakeholders with differing priorities that need to be...
Solvency II Components Programmes will be challenged to align a variety of different functions as Solvency II will impact ...
Data Policy & Governance The Data Policy should define the complete needs of all data and all data users across the organi...
There are a number of areas of consideration for Data Policy & Governance Solvency II Programme Slide  <ul><li>Complete, A...
Systems & Data An approach to managing the various key areas is given below Solvency II Programme Slide
Data Directory The Data Directory is the central foundation on which the data workstream is built. Slide  <ul><li>Is manda...
Data Dictionary A working tool which is used across the whole Solvency II Programme Slide  <ul><li>Much more detailed/gran...
Data Flows & Controls Diagrams The Data Flows & Controls Diagrams (DFDs) pictorially represent how the data is manipulated...
Data Controls Register The Data Controls Register (DCR) is the central repository that contains all of the data control ac...
Reports Register The Reports Register (RR) highlights all of the reports and reconciliations that occur to the data as it ...
Solvency II Programme Slide  <ul><li>Solvency II, uniquely, effects all areas of an organisation; </li></ul><ul><li>Progra...
Solvency II -The Practicalities Around Programme Governance & Data
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Solvency II -The Practicalities Around Programme Governance & Data

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This was the Gain-Line presentation at the ILAG Solvency II Workshop

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Solvency II -The Practicalities Around Programme Governance & Data

  1. 1. Solvency II The Practicalities Around Programme Governance & Data
  2. 2. Gain-Line & Solvency II Solvency II is the biggest ever exercise in bringing together insurers and re-insurers under one regulatory regime. Solvency II Programme Slide <ul><li>Solvency II is a set of principles and guidelines leading to best practice in risk management; </li></ul><ul><li>It is an Enterprise-Wide initiative that will impact all areas of the business; </li></ul><ul><li>Early adopters are helping the FSA set the bar for what is required in the Market; </li></ul><ul><li>The range and diversity of insurance operations means that a Solvency II solution will vary from company to company; </li></ul><ul><li>Numerous approaches are being adopted across the market and it not a case of one size fits all ; </li></ul><ul><li>The eventual solution in each case will depend on a range of inputs from a number of different disciplines. </li></ul>
  3. 3. Who Are Gain-Line The Gain-Line Group is a consortium of specialist companies who have come together to deliver a solution for Solvency II Solvency II Programme Slide Hillway Consulting
  4. 4. Gain-Line & Solvency II Solvency II Programme Slide There are many stakeholders with differing priorities that need to be integral to the Solvency II Programme <ul><li>Chief Actuary – centralised and consistent modelling approach for all actuarial ensuring realistic ‘what-if’ and scenario planning; </li></ul>CA CRO <ul><li>Chief Risk Officer – enterprise wide consistent risk management standards and transparent risk modelling approach; </li></ul>CIO <ul><li>Chief Information Officer – robust IT governance with a consistent approach to data controls & quality; </li></ul>CFO <ul><li>Chief Financial Officer – faster reporting timetable with a consistent approach to financial and management information; </li></ul>CEO <ul><li>Chief Executive Officer – enhanced business performance through risk-based decision making and more efficient allocation of capital. </li></ul>
  5. 5. Solvency II Components Programmes will be challenged to align a variety of different functions as Solvency II will impact all elements of the Business Slide Solvency II Programme (inc Programme Office) Internal Model/Risk Management ORSA and the 6 Tests Risk Management Data Quality & Governance Solvency II Data Repository IT Systems & Processes Systems & Data Governance & Oversight Documentation, Comms & Training Governance & Communications External Reporting Standard Formula Portfolio Management Calculation Kernel Assets & Asset Liability Management (ALM) Balance Sheet & Portfolio Management Technical Provisions
  6. 6. Data Policy & Governance The Data Policy should define the complete needs of all data and all data users across the organisation Slide
  7. 7. There are a number of areas of consideration for Data Policy & Governance Solvency II Programme Slide <ul><li>Complete, Accurate & Appropriate; </li></ul><ul><li>Meaningful to the business and value adding; </li></ul><ul><li>Compatibility with shared systems, data warehouses, part of a bigger group? </li></ul><ul><li>Enterprise Wide vs. Focus on Internal Model ? </li></ul><ul><li>Risk management Overlay vs. Embedded ? </li></ul><ul><li>Producer / Consumer approach to overcome issues with data flows across various functional areas. </li></ul>Data Policy & Governance
  8. 8. Systems & Data An approach to managing the various key areas is given below Solvency II Programme Slide
  9. 9. Data Directory The Data Directory is the central foundation on which the data workstream is built. Slide <ul><li>Is mandated by Lloyd’s; </li></ul><ul><li>Guidance has been produced based on CEIOPS’ guidance; </li></ul><ul><li>Each row represents a group of data which relates to an Internal Model Input; </li></ul><ul><li>Key input into the Internal Model. </li></ul>
  10. 10. Data Dictionary A working tool which is used across the whole Solvency II Programme Slide <ul><li>Much more detailed/granular with respect to the data; </li></ul><ul><li>Owned by the data architect; </li></ul><ul><li>Shows the lineage and characteristics of each individual data field; </li></ul><ul><li>A number of tools can be used to hold the Data Dictionary. </li></ul>
  11. 11. Data Flows & Controls Diagrams The Data Flows & Controls Diagrams (DFDs) pictorially represent how the data is manipulated and physically moves within the organisation. Slide <ul><li>Created for each row on the Data Directory – i.e. for each Internal Model Input; </li></ul><ul><li>Should cross-reference the Data Dictionary; </li></ul><ul><li>Overall data quality and governance can be seen by incorporating the data controls. </li></ul>
  12. 12. Data Controls Register The Data Controls Register (DCR) is the central repository that contains all of the data control across the organisation. Slide <ul><li>The DCR categorises the controls into a number of sub-categories so that weaknesses and deficiencies can be identified. </li></ul>
  13. 13. Reports Register The Reports Register (RR) highlights all of the reports and reconciliations that occur to the data as it moves through the organisation. Slide <ul><li>The RR categorises all of the reports (both manual and automated) that are used within the organisation to see the effectiveness of the controls. </li></ul>
  14. 14. Solvency II Programme Slide <ul><li>Solvency II, uniquely, effects all areas of an organisation; </li></ul><ul><li>Programmes need to be structured in such a way to address this; </li></ul><ul><li>‘ C-Level’ Executives are accountable for Solvency II; </li></ul><ul><li>Different organisations will have different requirements dependent upon the systems/legacy landscape; </li></ul><ul><li>Data is central to the concept of Solvency II; </li></ul>In Summary… <ul><li>Minimum standards and requirements must be delivered. </li></ul><ul><li>Kesh Sharma – Director of Magellan Consultancy Services </li></ul><ul><li>Part of the </li></ul><ul><li>[email_address] </li></ul>

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