DT Solvency II works on the principle of mapping data source items directly to Eiopa templates through a data point model. The mapping process essentially creates pipelines for data items. Whenever a number changes in the source, that change flows through the pipeline to the EIOPA template.

1. www.InsuranceERM.com1
FRONTRUNNER
compliance reporting automation requires
significant investments of time and money
for the initial set-up process. This is one
of the reasons software automation for
compliance requirements is difficult for
organisations.
Take the example of a detailed chart
of accounts. From a compliance (and
management) point of view, details of
each account may not be necessary. Some
aggregation of those accounts is needed
for reporting and decision-making.
This implies that an automation system
would need to be set up to aggregate
all those accounts to a single value. This
process, called mapping, has to be done
once. After that, whenever data changes
in any of the accounts, it flows in to the
aggregation via a calculation (usually
weighted addition).
AUDIT CONTROL
When large amounts of data are handled,
minor changes to data are difficult to
keep track of. Often, these changes
happen because someone finds an error
somewhere and corrects it leading to a
change in linked numbers. Sometimes,
there could be inadvertent omissions that
lead to changes in certain aggregations. It
is, therefore, critical for software solutions
to have good control mechanisms. Audit
trails, of course, are a point of parity
and any reporting system in an industry
such as insurance that does not provide
reliable audit trails is just not acceptable.
Commenting or in-tool discussion threads
(template-level or cell-level) are an added
bonus and help make the tool more self-
contained.
DT Solvency II solution contains
four control features: audit trail; access
the degree that DataTracks can boast of
is an invaluable resource. The reputation
that DataTracks has in quality is also
unparalleled, as certain XBRL quality
studies in the US attest to.
ORGANISING DATA
Insurance organisations have very large
amounts of data. There is a lot of granular
data that insurance companies collect
about their transactions. Not all of it needs
to be reported and not all of it is even
required for calculations of items that
need to be reported. However, all of this
data needs to be kept organised and it
needs to be made available to reporting
front-ends quickly and accurately.
DT Solvency II works on the principle
of mapping data source items directly
to Eiopa templates through a data point
model. The mapping process essentially
creates pipelines for data items. Whenever
a number changes in the source, that
change flows through the pipeline to the
Eiopa template.
AUTOMATION
The large amounts of data that insurance
companies have are too onerous for
manual handling on a regular basis.
Software automation is critical for speed
and accuracy. Like all automations,
A
fter two false starts,
the Solvency II pillar 3
reporting regulations are
all set to come into force
in January 2016. The new
requirements ask for stringent reporting
of risk data. After the global economic
meltdown of 2008, it was only natural
that stricter rules for the protection of
customer money (and assets) began to
get considered, and it is probably a little
surprising that it has taken so long in the
first place.
However, now that it is here, insurers
have a huge hill to climb both in terms of
the granularity of the data that they collect
and the reporting format. DataTracks’
Solvency II solution, DT Solvency II, lets
insurers file their quantitative reporting
templates (QRTs) easily, accurately
and fast. Two delivery models provide
flexibility to insurers based on their
requirements.
XBRL RULES
Supervisors require insurers to submit
information in extensible business
reporting language (XBRL). XBRL is a
markup language, not a programming
language. Therefore, it is not a tough
technology for any company to master,
per se. However, the various ‘grammar’
and validation rules that come with an
XBRL adoption, along with the zero-error
tolerance context of financial information,
make XBRL difficult and somewhat scary.
DataTracks has a long history with
providing high-quality XBRL services
to companies across the world. XBRL
information usually happens to be
critical information and experience of
To submit Solvency II data to supervisors, insurers must get to grips with XBRL and
automated data handling. In this article, DataTracks explains its approach
Delivering
pillar 3 reporting
DT Solvency II works on the
principle of mapping data
source items directly to
Eiopa templates through a
data point model.

2. FRONTRUNNER
2 www.InsuranceERM.com
These articles were first published on www.insuranceerm.com. InsuranceERM is the leading source of news and
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be subscribed to in two ways depending
on whether database connections are
implemented or spreadsheet-as-data-source
is used.
This latter scenario will occur when
insurance companies are short of time
to integrate with the source but have
everything in spreadsheets.
Solvency II compliance requirements
place an extra reporting burden on
insurers. But in the long run, it is good for
customers and for the insurers themselves.
During these growing pains, however,
insurers need support and DataTracks,
with its extensive experience in XBRL
technology and in the rigors of compliance,
is a great partner to have.
Contact:
Dominic Savio,
vice president of business development
dominic@datatracks.co.uk
+44 (20) 3608 8035
restriction to specific report type and
specific templates within each report
type; commenting; and version compare
(between two different reporting periods
as well as between different versions within
the same period). Version comparing is
useful in pinpointing differences when
source data changes, and in performing
variance analysis between periods.
DELIVERY
DataTracks offers its Solvency II solution
in two delivery models. The Lite model
provides downloadable Excel-based
blank templates from a DataTracks portal.
Clients fill in data every quarter and
upload these filled-up templates back onto
the portal. The XBRL file will be generated
and kept ready at the portal, where the
client can download it and submit to the
regulator.
The Enterprise model is the integrated
solution that we have been talking
about. The Enterprise model itself can
Register
with Us
Integrate with
your Data Sources
(one-time)
Generate XBRL
& File with
Regulator
Preview Template
& Sign-Off
DT Solvency II - Enterprise
DT Solvency II Enterprise
DT Solvency II solution
contains four control
features: audit trail; access
restriction to specific report
type and specific templates
within each report type;
commenting; and version
compare (between two
different reporting periods
as well as between different
versions within the same
period)