Solvency II

Optimize the value of Solvency II

The supervisory framework of Solvency II imposes requirements on insurers and re-insurers in Europe in terms of capital, governance and information provision. After implementation, the added value of Solvency II can be put to work for your organization. We can support you with the following.

Efficiency of your reporting process

Under Solvency II, you are required to provide various reports (see box). Our specialists can help you optimize your reporting process for Solvency II in conjunction with your other financial reports. We have knowledge of the different valuation and reporting requirements, actuarial and financial processes, transformation processes, digitization, robotics and IT. This means we can set up your reporting process as efficiently and transparently as possible.

Main requirements and reports under Solvency II

Pillar I Capital

  • Own funds
  • Solvency Capital Requirement 
  • Minimum Capital Requirement 

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Pillar II Controlled operations

  • Governance-systeem
  • Risk management system
  • Own Risk and Solvency Assessment (ORSA)

 

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Pillar III Reporting

  • Solvency and Financial Condition Report (SCFR, public)
  • Regular Supervisory Report (RSR, not public)
  • ORSA-rapport (not public)
  • Quantitative Reporting Templates (QRT’s, not public)

 

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For more information, visit the supervisory body EIOPA.

Capital management toolbox with management information

The mandatory reports under Solvency II are a source of management information, for management. They show, among other things, risk exposures, risk concentrations, the development of capital figures, structure of financial position and net capital gain - all key control variables in your strategic management issues. Do you know how to use the information from your Solvency II reporting process to optimize your business operations? Do the risk exposures and capital strategies match your goals? And what improvement and optimization can you use? We can help you make the connection between mandatory reports of Solvency II and management information to further shape your strategy and actively align your risk profile accordingly.

Audit and benchmark: are the figures consistent with the strategic goals?

During the implementation of your Solvency II calculations in your systems, all kinds of choices are made by both management and the employees of the financial and actuarial department. What choices have been made and are they consistent? Do you know how to manage all the models that provide this information? With a validation, audit or second opinion, we understand your model environment and can show you how your implementation compares to that of other insurers.  

´A proper analysis of your Solvency II reports establishes a foundation for strategic decisions.´

Theo Berg

Optimum data quality and process control

Input for Solvency II calculations originates from a broad spectrum of financial and policy administration, including external sources. Among other things, the current function report requires an assessment of data quality and management is expected to form an opinion on the entire audit process. We analyse the data quality and provide opportunities for improvement, so that the management team can wholeheartedly carry the responsibility for the data and processes.

Standard formula or internal model?

One of the choices under Solvency II is the choice between the application of the standard formula and an internal model. When the risks of your organization are specific, you want to include them in the assessment of your financial position in an internal model. Considering this, we recommend a full or partial internal model and validation of the model landscape.

Contact us

Bas van de Pas

Partner, PwC Netherlands

Tel: +31 (0)88 792 69 89

Theo Berg

Partner, PwC Netherlands

Tel: +31 88 792 26 23

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