Solvency II requires insurers to overhaul their approach to data management and reporting across the three pillars. Pillars II and III, which focus on governance, risk management, and disclosure, are as important as Pillar I which sets capital requirements. Insurers need to focus on implementing efficient reporting workflows to integrate data collection and ensure compliance with Solvency II's tight deadlines and controls. Automating workflows helps reduce errors, improve consistency, and provide audit trails for regulators. Implementing robust workflows is challenging and may require changes to organizational structures and systems.
Basel III Greenhorn – Process and Information System MetamorphosisInfosys
This paper discusses the basic process and system architecture required to combat the Basel n+1 syndrome, and how technology can be creatively leveraged for active risk management.
Risk Management by Deepak kumar dwivedi
To believe the news media, there are a host of cruel and omnipotent hackers out there who can totally destroy any system they set their minds to, spreading total devastation upon whoever and wherever they wish. The slightest freak of nature - heavy rain, a fire, a date on a calendar - can wipe any system out entirely. This is not the case: the devastation is not total, the destruction is not complete there are countermeasures that can be brought to bear to avoid this disastrous outcome.
This presentation gives basic orientation of Takaful to non insurance professionals and public at large. It was delivered to Pakistan Professional Forum Qatar
Diagnosing and Repairing Data Anomalies in Process ModelsUniversität Rostock
Workshop presentation given by Niels Lohmann on September 7, 2009 in Ulm, Germany at the 5th International Workshop on Business Process Design (BPD 2009); part of BPM 2009.
Basel III Greenhorn – Process and Information System MetamorphosisInfosys
This paper discusses the basic process and system architecture required to combat the Basel n+1 syndrome, and how technology can be creatively leveraged for active risk management.
Risk Management by Deepak kumar dwivedi
To believe the news media, there are a host of cruel and omnipotent hackers out there who can totally destroy any system they set their minds to, spreading total devastation upon whoever and wherever they wish. The slightest freak of nature - heavy rain, a fire, a date on a calendar - can wipe any system out entirely. This is not the case: the devastation is not total, the destruction is not complete there are countermeasures that can be brought to bear to avoid this disastrous outcome.
This presentation gives basic orientation of Takaful to non insurance professionals and public at large. It was delivered to Pakistan Professional Forum Qatar
Diagnosing and Repairing Data Anomalies in Process ModelsUniversität Rostock
Workshop presentation given by Niels Lohmann on September 7, 2009 in Ulm, Germany at the 5th International Workshop on Business Process Design (BPD 2009); part of BPM 2009.
How to Create an Interactive DASHBOARD in MS Excelraman109
How to create a DASHBOARD for Management reviews. You may not be having enough time to show the complete 100s of input data, and at the same time management is only interested in short and crisp snapshot. DASHBOARD is the best way of showing all the information in one snapshot. And a step forward is if we can make it Interactive and play with the information.
Australian Car Insurance Market - ANALYSIS Ullash Tiwari
For my MBA and also my current consulting role I had to assess the Australian Motor Insurance market in terms of its economics, drivers, trends and competitive structure to inform my client of the market’s attractiveness to grow sales revenues and also give consideration to lessons from overseas General Insurance markets
Also I had to determine what strategic design principles would need to be applied to any new initiatives based on bank strategy, so my client's strategy, the client's Group’s brands, and awareness of customer needs
This powerpoint slides also assess what issues may exist in my Client's current Motor Insurance operating model and customer value proposition that may need to be addressed for new initiatives to succeed
Solvency II compliance requires insurers to address all three pillars of the
regulation, namely:
Pillar1: Capital Requirements
Pillar 2: Workflow, Audit and Governance
Pillar 3: Reporting
In preparing for Solvency II, many insurers have up to this point been focusing
their efforts on addressing the quantitative requirements of Pillar 1 and are
only now turning their attention to Pillars 2 and 3. Under the new regime
insurers will face more frequent and prescriptive reporting alongside
increased levels of controls and governance.
In this paper, industry leading practitioners provide insight into the key
challenges and issues arising when managing the workflow around internal
models. They also discuss processes surrounding reporting and the integration
with risk modeling and capital calculations.
DataTracks' approach on " Solvency II - Delivering Pillar 3 reporting"DataTracks
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.
This white paper will discuss prioritizing actuarial innovation, insurance business oriented architecture, evaluating your actuarial environment, enterprise actuarial data architecture, potential solutions, and critical success factors.
Presented by William Freitag, Managing Partner and CEO, Agile Technologies
The digital transformation in physical security Paolo Sciarappa
To fully understand the digital transformation of Physical Security, it is necessary to analyze the context in which it has evolved by retracing the phases of its evolution and its relations with other sectors of security. Through this analysis I will illustrate the profound changes it has undergone, the new opportunities and its new role in security.
Proposal for an Implementation Methodology of Key Risk Indicators System: Cas...Hajar Mouatassim Lahmini
Operational risk is a prominent preoccupation of all managers these days. Indeed, the development
of collective awareness has led executives to implement a wide variety of solutions in order
to keep this risk and its consequences under control. In this context, we propose a practical implementation
methodology of key risk indicators system with the aim to identify operational risks
and above all to propose preventive and corrective measures capable of monitoring and managing
operational risks. The proposed system will be adjusted to Investment Management process in a
Moroccan Asset Management Company.
Our experts are understands Solvency II requirements and apply potential solutions for your business.Our research reports examines board level and top management attitudes towards Solvency II regulation.
How to Create an Interactive DASHBOARD in MS Excelraman109
How to create a DASHBOARD for Management reviews. You may not be having enough time to show the complete 100s of input data, and at the same time management is only interested in short and crisp snapshot. DASHBOARD is the best way of showing all the information in one snapshot. And a step forward is if we can make it Interactive and play with the information.
Australian Car Insurance Market - ANALYSIS Ullash Tiwari
For my MBA and also my current consulting role I had to assess the Australian Motor Insurance market in terms of its economics, drivers, trends and competitive structure to inform my client of the market’s attractiveness to grow sales revenues and also give consideration to lessons from overseas General Insurance markets
Also I had to determine what strategic design principles would need to be applied to any new initiatives based on bank strategy, so my client's strategy, the client's Group’s brands, and awareness of customer needs
This powerpoint slides also assess what issues may exist in my Client's current Motor Insurance operating model and customer value proposition that may need to be addressed for new initiatives to succeed
Solvency II compliance requires insurers to address all three pillars of the
regulation, namely:
Pillar1: Capital Requirements
Pillar 2: Workflow, Audit and Governance
Pillar 3: Reporting
In preparing for Solvency II, many insurers have up to this point been focusing
their efforts on addressing the quantitative requirements of Pillar 1 and are
only now turning their attention to Pillars 2 and 3. Under the new regime
insurers will face more frequent and prescriptive reporting alongside
increased levels of controls and governance.
In this paper, industry leading practitioners provide insight into the key
challenges and issues arising when managing the workflow around internal
models. They also discuss processes surrounding reporting and the integration
with risk modeling and capital calculations.
DataTracks' approach on " Solvency II - Delivering Pillar 3 reporting"DataTracks
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.
This white paper will discuss prioritizing actuarial innovation, insurance business oriented architecture, evaluating your actuarial environment, enterprise actuarial data architecture, potential solutions, and critical success factors.
Presented by William Freitag, Managing Partner and CEO, Agile Technologies
The digital transformation in physical security Paolo Sciarappa
To fully understand the digital transformation of Physical Security, it is necessary to analyze the context in which it has evolved by retracing the phases of its evolution and its relations with other sectors of security. Through this analysis I will illustrate the profound changes it has undergone, the new opportunities and its new role in security.
Proposal for an Implementation Methodology of Key Risk Indicators System: Cas...Hajar Mouatassim Lahmini
Operational risk is a prominent preoccupation of all managers these days. Indeed, the development
of collective awareness has led executives to implement a wide variety of solutions in order
to keep this risk and its consequences under control. In this context, we propose a practical implementation
methodology of key risk indicators system with the aim to identify operational risks
and above all to propose preventive and corrective measures capable of monitoring and managing
operational risks. The proposed system will be adjusted to Investment Management process in a
Moroccan Asset Management Company.
Our experts are understands Solvency II requirements and apply potential solutions for your business.Our research reports examines board level and top management attitudes towards Solvency II regulation.
AN APPROACH FOR A BUSINESS-DRIVEN CLOUDCOMPLIANCE ANALYSIS COVERING PUBLIC SE...ijmpict
The need for process improvement is an important target that does affect as well the government processes. Specifically in the public sector there are specific challenges to face .New technology approaches within government processes such as cloud services are necessary to address these challenges. Following the current discussion of „cloudification“of business processes all processes are considered similar in regards to their usability within the cloud. The truth is, that neither all processes have the same usability for cloud services not do they have the same importance for a specific company.
AN APPROACH FOR A BUSINESS-DRIVEN CLOUDCOMPLIANCE ANALYSIS COVERING PUBLIC SE...ijmpict
The need for process improvement is an important target that does affect as well the government processes.
Specifically in the public sector there are specific challenges to face .New technology approaches within
government processes such as cloud services are necessary to address these challenges. Following the
current discussion of „cloudification“of business processes all processes are considered similar in regards
to their usability within the cloud. The truth is, that neither all processes have the same usability for cloud
services not do they have the same importance for a specific company.
The most comprehensive process within a company is the corporate value chain. In this article one key
proposition is to use the corporate value chain as the fundamental structuring backbone for all business
process analysis and improvement activities. It is a pre-requisite to identify the core elements of the value
chain that are essential for the individual company’s business and the root cause for any company success.
In this paper we propose to use the company-specific value-creation for the “cloud-affinity” and the
“cloud-usability” of a business process in public sector considering the specific challenges of addressing
processes in cloud services. Therefor it is necessary to formalize the way the processes with its
interdependencies are documented in context of their company-specific value chain (as part of the various
deployment- and governance alternatives (e.g. security, compliance, quality, adaptability)). Moreover, it is
essential in the public sector to describe in detail the environmental / external restrictions of processes..
With the use of this proposed methodology it becomes relatively easy to identify cloud-suitable processes
within the public sector and thus optimize the public companies value generation tightly focused with the
use of this new technology.
Teahcing material for the Business Process Management course at ITU 2018, that regard to Business Process Compliance, analysis, modelling, checking, monitoring, and auditing.
With a growth in interest in ‘big data’ as electric grids evolve and data sources become more common and more productive, there needs to be a discussion of the management of data in a secure manner, and the role of analytics to provide information and have ‘meaning’. This paper looks at a number of challenges that are beginning to be faced, and opportunities to ensure that the Future Grid is secure. Challenge 1 is the management of ‘big data’, which may provide value if appropriately viewed and analyzed; Challenge 2 is the management of security, for both data and systems which use the data; Challenge 3 is the need for appropriate urgency in analysis and action; Challenge 4 is to understand the meaning of the data and associated analyses, but also to understand the limits of our understanding.
Four Steps to Making Economic Capital Calculations an Engine for Business GrowthSecondFloor
Economic capital calculation is not only a journey to Solvency II compliance
This paper looks at why economic capital (EC) calculations are frequently under-used as a tool to drive business strategy, and why that amounts to a huge missed opportunity for insurance businesses of all sizes. It explores the barriers that prevent insurance businesses from using EC as a strategic tool to shape, strengthen and improve the business, and suggests a four-step process to ensuring that economic capital calculations become a vital planning resource for all areas of the business, including risk managenet, finance, underwritingm risk analysis.
Economic Capital Calculations for Insurances whitepaper refers to
The challenge for Risk Officers
Barrier # 1 No Common Language
Barrier # 2 Poorly Understood Risk Models
Barrier # 3 The Wrong Risk Models - Or Not Enough
The Trouble with Value at Risk (VaR): example
Four Steps to Meaningful Economic Capital Calculations
STEP 1: Sing from the same balance sheet
STEP 2: Speak English: bad karaoke is preferable to good silence
STEP 3: Agree on own funds and SCR and create a common risk dashboard
STEP 4: Build a chorale
Look to the Future: the challenge for insurance risk professionals.
In summary, the challenge for insurance risk professionals is to create an environment in which Economic Capital Calculations can be used by all lines of business to drive good decisions that protect policyholders and investors while enabling safe and profitable growth (the essence of Pillar II of Solvency II). While few risk departments are fully capable of this today, some innovative firms share this vision and are working towards achieving it.
eFrame® Content Compiler Easily Create and Publish Internal and Regulatory Re...SecondFloor
Combine quantitative and qualitative data
from across the organisation to create
clear and meaningful reports quickly,
easily, accurately and within deadlines.
eFrame® is a powerful data management environment that works with your
existing systems to gather data from across the organisation for analytics and
reporting purposes. eFrame® uses automation and workflow to ensure data is
timely, accurate, traceable and auditable, whether it’s being used for internal
management reporting, statutory reports or regulatory filings.
Implementation of a Credit Risk Management Platform for a Large Insurer Based...SecondFloor
A new, centralised credit risk platform has delivered
many business benefits to this global insurance group,
including the ability to mitigate risk by dynamically
managing investment limits.
eFrame® for Insurance Solvency II Stress TestingSecondFloor
Today not many insurance can claim their Stress Test report is credible enough to base their management strategy on.
Add to this the governance and workflow for each risk type, ensuring modelling processes and risk calculations are running on time and based on validated data, insurers can feel confident that ongoing compliance and supervisory review will be efficient. Having all this is in one proven solution eases the stress of bringing about the positive change intended by the Solvency regulations.
Business Benefits
eFrame® for Insurance Solvency II Stress Testing enables a centralized approach to stress testing that is operationally efficient, overcoming the cost and resource issues that hinder a Insurance’s ability to drive their investments in a prudent way.
A dedicated framework, and working with assumptions that are in line with the actual stressed situation faced by the organisation and with the models actually used for the production of regulatory submissions, gives confidence in the results and subsequent report. As such, the results of the Stress Test and ad-hoc scenario analyses are respected in the business and action is taken on the reports.
Crucially, re-running stress tests to see whether restructuring in light of previous insights has created greater resilience, helps make and explain executive management decisions.
eFrame® for Insurance Solvency II Internal ModelSecondFloor
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.
For more information please visit: http://www.secondfloor.com/solution/eframe-for-insurance-solvency-ii-internal-model
eFrame® for Insurance Solvency II Standard FormulaSecondFloor
When implementing the Solvency II Standard Formula, insurers are finding that calculating their Solvency and Minimum Capital Requirements (SCR and MCR), and Risk Margin is not simple.
Business Benefits
With eFrame® for Insurance Solvency II Standard Formula, insurers can smooth the flow and ensure the governance of data for solo and group reporting. With its taxonomy driven data model, every data point necessary to complete the quantitative reporting templates (QRTs) is identified and can be mapped within the organization, bringing confidence that the regulatory submissions and business intelligence derived from them will be dependable.
For more information please visit: http://www.secondfloor.com/solution/eframe-for-insurance-solvency-ii-standard-formula
Basel Committee on Banking Supervision: Bank principles for effective risk da...SecondFloor
The Basel Committee, which creates regulations for banks, has published a set of principles regarding effective risk data aggregation and risk reporting, which will provide a fantastic business case for risk professionals to improve their risk frameworks. I’ve included highlights below, but you can take a look at the full report here.
The principles for effective risk data aggregation and risk reporting will be mandatory for globally systemically important banks (G-SIBs) from 2016, and the Basel Committee recommends that national regulators make them mandatory for domestically systemically important banks (D-SIBs). There are currently 29 G-SIBs, and D-SIBs will probably be the top four or five largest and/or most complex banks in each country. Beyond this, I believe the principles in the Basel document will become an industry standard by which all banks will be assessed by institutional investors and during due diligence processes for mergers and acquisitions.
The Basel Committee’s principles cover four closely related topics, and are common sense, though not easily attainable:
• Overarching governance and infrastructure
• Risk data aggregation capabilities
• Risk reporting practices
• Supervisory review, tools and cooperation
A couple excerpts from the report that will resonate with most practitioners explain why the principles are necessary. These explanations will come in handy as ‘I-told-you-so’ introductions to many a business case for the next steps in enterprise/integrated risk management frameworks and in business analytics at group level (because it’s ultimately the board and senior management that own this challenge):
•Ensure that management can rely with confidence on the information to make critical decisions about risk.
•Accurate, complete and timely data is a foundation for effective risk management. However, data alone does not guarantee that the board and senior management will receive appropriate information to make effective decisions about risk. To manage risk effectively, the right information needs to be presented to the right people at the right time. Risk reports based on risk data should be accurate, clear and complete. They should contain the correct content and be presented to the appropriate decision-makers in a time that allows for an appropriate response.
The list of globally systemically important banks, it is created by the Financial Stability Board, and can be found at: http://www.financialstabilityboard.org/publications/r_121031ac.pdf. This latest list was created in Nov 2012 and will be updated again in Nov 2013.
For more information please contact marketing@secondfloor.com
SecondFloor eFrame® product orchestrates the data, systems and processes esse...SecondFloor
Business benefits
• Through governance, workflow and process control it conducts the interplay between modeling, analytics, compliance, reporting and decision support throughout the enterprise.
• Ensures efficiency by managing multiple reporting cycles, reporting approaches, business hierarchies, geographies and supervisory jurisdictions.
• Instills confidence among those signing off regulatory reports and taking business decisions, through knowing the origin and evolution of source data.
• Leverages an organization’s existing technology to enable business analytics, by controlling the data and results flowing between data warehouses, modeling tools, analytic systems, desktop applications, and business intelligence reporting solutions.
• Ensures completeness by providing an interface for business experts to submit specialist data, not held in structured data stores, for inclusion in analytics and reports.
For more information please visit: http://www.secondfloor.com/eframe
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how can I sell pi coins after successfully completing KYC
Insurance Risk Smoothing the Flow
1. Solvency II ■ capItal ■ RISk ManageMent www.risk.net/insurance-risk June 2012
Smoothing the flow
Insurers need to overhaul their approach to dealing with the flow of data within their organisations,
if they are to comply with all of the requirements of Solvency II, not just Pillar I. Clive Davidson reports
The capiTal requiremenTS imposed by Solvency II – Pillar I – have Tom Wilson, chief risk officer at Allianz in Munich. The Solvency II
tended to hog the limelight when it comes to the new regime. This is reporting requirements imply a sequence that starts with the collec-
understandable given the potential for these new requirements to tion of data, which feeds into risk modelling and capital calculation,
impact business and profitability. Also, the calculations require exten- the results of which are presented and, finally, distributed for internal
sive new data as well as sophisticated computational abilities. But and external reporting.
Solvency II’s other two pillars, II and III, are just as important and, But however logical this process might sound, this is not the sequence
in many ways, equally challenging for insurers to implement. in which the task of implementing Solvency II, and in particular
Furthermore, their inter-relationship suggests that the three pillars Pillars II and III, should be approached, says Emmanuel Noblet, who
are best approached in an integrated way, rather than treating Pillars was deputy chief risk officer at ING Insurance until March when he
II and III as afterthoughts to the risk modelling and capital calcula- moved to Amsterdam-based financial IT services company
tion processes. SecondFloor as chief operating officer.
Pillar II focuses on the governance and risk management of an insur- “Step one of implementing Pillars II and III should focus on the
ance business. Specifically, it covers the Own Risk and Solvency time-driven reporting window, because this is where the pain is
Assessment (Orsa) and the policies, systems, processes and functions hidden,” says Noblet. The challenge for insurers in this area, he says,
around that; while Pillar III focuses on disclosure and transparency is identifying the different pieces of information scattered throughout
through mandatory public and regulatory reporting.
“At the heart of Solvency II is protection for policyholders and set-
“Step one of implementing Pillars II
ting the correct level of technical provisions and the solvency capital
requirement [SCR],” says Martin Sarjeant, head of development for and III should focus on the time-driven
Pennsylvania-based SunGard’s iWorks Prophet actuarial and risk man- reporting window, because this is where
agement system. Most European insurers are familiar with these types the pain is hidden”
of calculation and have made significant progress in meeting Solvency
emmanuel noblet, SecondFloor
II’s requirements in this regard.
Areas where insurers are perhaps not as strong are in Pillars II and
III, he says. “We see a shift in the emphasis to these pillars as insurers the organisation that must be assembled, taking into account their
build out their frameworks, integrate their systems and move towards timing issues and constraints. This includes market and asset data
embedding the models within their decision-making processes. This delivery, potential valuations or cashflow projections, accounting
means having better controls over their period-end reporting, audita- reporting obligations and risk-reporting timelines.
bility and processes. It also means better communication and The next step is an examination of the processes, controls and audit-
presentation of results in a timely manner and transforming the results ability around the assembly of the information – in other words, who
into actionable information,” says Sarjeant. does what, when and how this is tracked and monitored.
For many insurers, it is the period-end reporting requirements that Only once these two steps, which provide the framework or context for
encapsulate the challenges of Pillars II and III. “Under Solvency II, the reporting process, are completed should the more technical aspects
firms will face dramatically increased reporting requirements with of the data collection and data distribution be tackled, argues Noblet.
tighter deadlines and a much higher level of required controls,” says The technical aspects include deciding how the results should be
1
Reprinted from Insurance Risk
2. woRkflow pRoceSSeS
presented – for example, whether the results including scheduling and control, often sup- any model changes will be well understood
of standard model calculations are presented ported by software. A good workflow and approved beforehand and not come as a
separately from or together with the results of management process is the key to meeting surprise during the closing process,” he says.
internal model calculations. Then there are the auditability and traceability requirements The process should be efficient in the sense
issues of how the required calculations and of Solvency II, says Laszlo Hrabovszki, group that it provides “a stable, routinised process,
aggregation will be structured – for example, chief life and health actuary, for Cologne- heavily supported by information technology
should the asset management system perform based Generali Germany. “It should provide and with only minimal manual intervention”,
credit spread calculations, or should they be [a single] framework for the most important Wilson adds. In other words, the workflow
part of the standard model calculation proc- part of the calculations. It should log and should be automated as much as possible.
ess. Once all this is done, the actual data to check the necessary steps and guide actuaries One of the issues with input data is the fact
be collected at the beginning of the process through the process,” he says. that internal models generally analyse risk
and distributed through internal and external So what constitutes good workflow man- from a business unit perspective, while the
reports at the end can be defined. agement? According to Wilson of Allianz, the Solvency II standard model takes a legal
But the ultimate goal of Solvency II is not management process should be both control- entity perspective. “Some companies have a
just about imposing a reporting schedule – it led and efficient, while anticipating the perfect match between legal entity and busi-
is about genuinely embedding rigour in cor- possibility of change to processes or tasks. ness entity, but most companies have material
porate governance, Noblet says. And the tool “It will be controlled in the sense that all of difference between these hierarchies,” says
for creating this rigour is workflow, he says. the input data as well as end numbers can be Noblet of SecondFloor. This means that
Workflow is the formalisation of processes, relied upon to tie together, and the impact of while the same data is required for both
risk.net/insurancerisk June 2012 2
3. woRkflow pRoceSSeS
“An automated workflow process, tying
together the myriad data flows and analysis
systems, is absolutely required by large,
complex financial services institutions”
Tom Wilson, allianz
model, the actuary will have to ensure that the data is fit for purpose.
i nter- “Regulators will want to see proof that data was approved – that
nal and someone signed off on it,” says Curt Burmeister, vice-president of
standard risk solutions at Toronto-based Algorithmics. In the same way
models, it must be modern databases log and track all actions on data, so the workflow
organised in different should provide a similar audit trail, including a record of with whom
ways. “Context does the responsibility for the data lies.
matter,” he says. Another danger that workflow should guard against is undocu-
Automation has a number of bene- mented, ‘on-the-fl y’ changes to models outside the approval process,
fits, including ensuring a consistent says Noblet. This is especially important for large groups that oper-
methodology is applied across the whole proc- ate decentralised systems where part of the modelling process, for
ess and reducing errors that might be introduced example liability cashflow calculations, might be done on local actu-
through manual processes. “By breaking down the arial systems.
whole process of risk modelling and capital calculation into Comprehensive, well-designed and automated workflow for Pillars II
their basic components and [automating these in] software, one and III of Solvency II clearly provides control and efficiency while
can make sure that every calculation follows the same methodology,” reducing errors and unauthorised actions. However, there are a
says Hrabovszki of Generali Germany. number of challenges to achieving such a system. These include the
Automation also improves efficiency by avoiding breaks in processes continued uncertainty over the fi nal form of the Solvency II rules, the
and reducing human error, he adds. “An automated workflow process lack of standardised systems and the need to build flexibility into
reduces manual steps and also provides the opportunity to inform workflow processes.
users that further actions are required. Moreover, reducing manual “Methodology and, therefore, processes are still subject to many
steps reduces possible error sources,” says Hrabovszki. changes, which makes the instalment of standardised processes com-
In fact, the demands of Pillars II and III in terms of governance and plicated,” says Generali’s Hrabovszki. “Moreover, no standard
reporting are such that automated workflow is no longer an optional solutions for calculations within the Solvency II framework have been
luxury for insurers of any size. “An automated workflow process, tying established in the market due to the short history of Solvency II. Thus,
together the myriad data flows and analysis systems, is absolutely companies are obliged to set up individual solutions, incurring higher
required by large, complex fi nancial services institutions if they are to costs than [if they were able to use] standardised solutions,” he adds.
develop efficient, controlled and robust reporting processes across the The need for flexibility can require insurers to review fundamental
internal and standard models and market-value balance sheets under a organisational structures and traditional ways of operating. Although
management and legal entity view, within the time horizons dictated workflow tries to pin down and mechanise the processes leading up to
by public and supervisory disclosures. The days when the internal period-ends and the output of reports, at the same time it has to allow
model and valuation could be done through a manual and artisanal for post-closing updates, corrections and re-runs – and these must
process are over,” says Wilson. have their own workflow. The criteria and thresholds for such events
Part of the workflow process will be to ensure the quality of the must be clearly defi ned, the correction procedures must be well docu-
data used in the risk modelling and capital calculations. Not only are mented and the actions must be as equally formalised and auditable as
the validation standards for data onerous under Solvency II, but on the main workflow.
top of that the technical actuarial standards require that data is not “To accomplish this, many organisations will have to fundamen-
just used blindly. For example, where data feeds into an actuarial tally improve the coordination between the risk, fi nance and
3
Reprinted from Insurance Risk
4. woRkflow pRoceSSeS
actuarial functions, often breaking down silos and building an extensions to the system. For insurers with highly bespoke busi-
integrated closing process, both at the operating entity level and nesses, SecondFloor will customise CWM.
at a group level, as well as providing robust systems support,” says Meanwhile, Prudential Corporation Asia, part of the UK’s
Wilson of Allianz. Prudential, is upgrading to the enterprise version of SunGard’s iWorks
In the end, the workflow process is about providing management Prophet to help it optimise risk management, actuarial processing and
with the information it can use to make decisions about the business compliance reporting to meet Solvency II standards, including data
in the interest of all its stakeholders, as well as providing regulators management and automation of reporting processes. And leading
with the information they need to protect consumers and the wider Finnish insurer Tapiola recently chose New York-based Moody’s
economy. “Top managers generally feel comfortable about making Analytics’ Solvency II software to help it meet regulatory require-
decisions – that is what they are paid for – but their issue is they have ments across all of its Finnish operations. “We saw a distinct advantage
to make decisions based on information from processes they don’t in the solution’s combination of robust data quality manage-
control and which appear cumbersome and complex,” says Noblet. ment with built-in SCR calculation and reporting
Good workflow management systems should give them greater confi- capabilities,” said Markku Miettinen, chief risk
dence in the information on which they are basing their decisions, officer at Tapiola.
because of the way it contextualises, formalises, automates and tracks As insurers progress with their
the production of that information, thereby ensuring its accuracy, Solvency II projects, many realise
completeness, timeliness, auditability and repeatability. that the task of managing
the workflow, govern-
ance and
“No standard solutions for calculations
reporting
within the Solvency II framework have for
been established in the market… thus,
companies are obliged to set up individual
solutions, incurring higher costs”
laszlo hrabovszki, Generali Germany
Sarjeant of SunGard agrees. “Process management tools help orches-
trate and automate processes while maintaining an audit trail, giving
executives the confidence they need to ensure their decisions are accu-
rate, timely and contextual,” he says.
With the growing recognition of the challenges of Pillars II and III
and the importance of implementing efficient, rigorous and robust
processes and procedures, insurers are increasingly looking for
strong workflow and reporting capabilities in addition to risk model-
ling and capital calculation functions when choosing Solvency II
software. ING Insurance and Allianz both selected Algorithmics to S o l ve n c y
provide the analytical technology framework for their internal II is one of
models and hired SecondFloor to develop the workflow to support the biggest chal-
their capital calculations. lenges they face,
Realising that many insurers were going to face similar challenges according to Burmeister
in terms of the workflow, governance and reporting around their of Algorithmics. “In effect,
internal models for Solvency II, Algorithmics and SecondFloor col- you need to model how an
laborated to develop a product called Capital Workflow Manager organisation works and how the
(CWM). Among insurers that have implemented the CWM product people interact with one another. It is a
is the UK’s Legal & General, which added some internally developed massive undertaking,” he says. IR
risk.net/insurancerisk June 2012 4