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eFrame®for Insurance Solvency IIInternal ModelAn efficient, automated control and reportingsolution for Solvency II Intern...
eFrame®for Insurance Solvency IIInternal ModelAn efficient, automated control and reportingsolution for Solvency II Intern...
Benefits of choosing the                                  Internal Model            Internal Model                        ...
An efficient, automated                                            •	 Taxonomy-driven data modelling – creates            ...
BenefitseFrame® for Insurance Solvency II Internal Model         Key Featuresis an elegant solution to Solvency II reporti...
For more details please contactSecondFloor.About SecondFloorSecondFloor helps firms to complyand produce regulatory inform...
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eFrame® for Insurance Solvency II Internal Model


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In addition to the risk and finance data challenges of the Standard Formula, the Internal Model approach brings with it the challenge of model validation and governance.

Also, dry runs are highlighting the logistical challenges of running some Solvency infrastructures, even with the support of the project team that built it, which will disperse in the near future. The next step beyond compliance is efficiency in a business-as-usual environment.

This solution is already in production at number of large insurers, and is founded on experience with insurers who pioneered risk and economic capital programmes long before the regulations were as clear as they are today. As such, this solution is adaptable to regulatory changes and the evolution of the insurers IT and business landscape.

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eFrame® for Insurance Solvency II Internal Model

  1. 1. eFrame®for Insurance Solvency IIInternal ModelAn efficient, automated control and reportingsolution for Solvency II Internal Model
  2. 2. eFrame®for Insurance Solvency IIInternal ModelAn efficient, automated control and reportingsolution for Solvency II Internal Model
  3. 3. Benefits of choosing the Internal Model Internal Model implementation challenges Insurers taking the Internal Model When preparing an internal modelapproach to Solvency II reporting are doing so for a approach for regulatory approval and subsequentvariety of reasons. ongoing Solvency II reporting, insurers typically run into a number of technical and business issues:For some, the business is too complex to fit theStandard Formula, while others already have • Process governance – the internal modela sophisticated business-wide model in place lacks the necessary documentation, controls andfor risk measurement and management, which audit trail to demonstrate its ongoing validity tocan be leveraged to support the internal model the regulatorapproach. Others estimate that they can lower • Data collection – the data, calculationscapital requirements by providing comprehensive, and people required to produce the reportgranular data using a bespoke, regulator-approved are dispersed across the business, makinginternal model. For many, it is a combination of all collection, reconciliation and validation anthree. arduous task – even when a process alreadyBut even where an internal model is already well exists for itembedded, there is a difference between a model • Repeatability – the complexity of producingthat is used for internal risk management and a Solvency II report casts doubt over theone that will meet with the approval of an external organisation’s ability to repeat, efficiently, theregulator. For most insurers, there is a lot of work same process every quarter, especially after theto be done to ensure the model is validated, original project team disperses, notwithstandingdocumented and appropriately governed – and its ability to handle ad-hoc requests such asthat it is capable of using it effectively to deliver an stress-testingaccurate, consistent, quarter-by-quarter view of theorganisation’s risk profile. • Manual effort – a huge amount of time is spent manually collecting data, performing calculations, reconciling and normalising data across business units, and producing the final report, which takes resources away from the day-to-day business • Time constraints –producing a Solvency II report can take many weeks of coordination effort, making it hard to meet regulatory reporting deadlines (typically 3-4 weeks after quarter end) • Process bottlenecks – when the report is being produced manually, there is a risk of data delivery delays and query resolutions creating bottlenecks in parts of the process.
  4. 4. An efficient, automated • Taxonomy-driven data modelling – creates a data model with standard, firm-wide definitions control and reporting and classifications for every data point required, solution for Solvency II not only for the quantitative reporting templates (QRTs),but also for other business analyticsInternal Model reportingeFrame® for Insurance Solvency II Internal • Workflow – sets up responsibilities and aModel orchestrates the collection of data and process flow for supplying and validating data forcalculations for Solvency II Internal Model Solvency II analytics and reporting. Email alertsreporting, introduces governance and workflow and escalations ensure data is supplied andto ensure accurate reports are produced on time, validated in a timely wayand provides a full audit trail for all aspects of thereport production. • Solvency II templates – uses pre-built templates to accelerate the setup andUsing the solution, insurers can accelerate report submissions, including a ready-madeSolvency II implementations and embed Internal environment for Risk QRT reporting and the QISModel-based reporting as an automated, modelrepeatable, controlled and audited process atsolo and group levels. • Integration with existing systems – imports data automatically from finance, modelling,Features risk and compliance applications, includingeFrame® is a highly configurable software spreadsheetsplatform that is tailored to the internal modelling • Time Window-Driven Reporting™ – oneprocesses chosen by an organisation. Once in click triggers the process to generate a completeplace, it automates, orchestrates and documents Solvency II report within a specified timeframe,the analysis and reporting of Life, P&C, Market, whilst preserving flexibility (typically 3-4 weeksCredit, Operational and other risks in line with the after quarter end)approved model. • Full audit trail – preserves a record of every• Enterprise visualisation – discovers and action taken to create a report, every calculationmaps the processes, organisational hierarchies, made in the production of the figures, and everysystems and data sources inherent in an source system supplying the underlying data.organisation today, to provide a start point fordeveloping or modifying an internal modelapproach Capital calculation Consolidation SCR/ MCR Calculators ESG Actuals vs Appetite Scenarios/ Risk factors Capital Model parameters eFrame® Liquidity Narratives For Insurance Reporting Solvency II Data Internal Model ORSA TP QRT Assets TIME WINDOW DRIVEN REPORTING PROCESS CONTROL & AUDITABILITY RSR/SFCR Operational losses Financial data eFrame® works with a Data Calculators firm’s existing systems Cash Flow = PD x LGD x EAD to create a repeatable, Replicating Portfolio auditable process for DFA Internal Model-based reporting
  5. 5. BenefitseFrame® for Insurance Solvency II Internal Model Key Featuresis an elegant solution to Solvency II reportingchallenges. • Automation and workflowCreating an automated process for Internal • Taxonomy-driven data modelModel-based reporting delivers significant • Data governance and validationbusiness benefits to complex insuranceorganizations: • Audit trail• Manage complex reporting demands – by • Orchestrates existing systemsestablishing dependable reporting processthat works across different risk types, reportingcycles, organisational hierarchies, geographiesand supervisory jurisdictions• Meet challenging reporting deadlines – with Key benefitsSecondFloor’s Time Window-Driven Reporting™ • Reporting deadlines met, everytimethat ensures Solvency II reports are completed,validated and submitted within the regulator’s • Efficient compliancedeadlines • Trusted reports• Reduce the cost and effort of compliance– by automating much of the data collectionprocess and automatically prompting individualsto fill any gaps, with guidance on what data toprovide• Ensure good governance - by creating astandard, documented reporting process for Find out moreSolvency II, with a full audit trail and traceabilityfor every data point supplied and every action To learn more about how eFrame® can help tocarried out in the production of the report set up, validate and manage an automated, repeatable internal model regime for Solvency II• Improve internal risk management – by reporting,creating trustworthy, auditable, repeatable reportsand business analytics that can be used to guide contact us on +31 (0)20 6589 700,internal decision-making about risk appetite and email us at,risk mitigation. or visit our website at www.secondfloor.comChosen by the world’s leadinginsurerseFrame® is being used for Solvency II preparationand reporting by some of Europe’s most complex,multi-country, multi-line insurers.Implementation ProcessAll eFrame® implementations can be carried outby experienced SecondFloor consultants on afixed-price, fixed-date basis.Contact us on to requesta demonstration or to discuss particularrequirements.
  6. 6. For more details please contactSecondFloor.About SecondFloorSecondFloor helps firms to complyand produce regulatory informationefficiently, consistently. Companiesthat turn to SecondFloor’ solutionsbenefit from timely, complete, accurate,traceable, auditable and repeatablereports and analytics. Facilitating stresstesting, economic capital calculations,and regulatory reporting in complexenvironments are key elements ofSecondFloor’s credentials that haveestablished it as a successful enablerof business analytics. eFrame®,SecondFloor’s software application,reflects best practice approaches andproject accelerators learned with clientsduring years of experience. SecondFlooris also an IBM risk analytics reseller.Request a full demonstrationWould you like to have a personalizeddemonstration of the eFrame® forInsurance Solvency II Internal Model?Please contact us or simply