eframe® for insurance solvency ii internal model
If you can't read please download the document
DESCRIPTION
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-modelTRANSCRIPT
- 1. eFramefor Insurance Solvency IIInternal ModelAn efficient, automated control and reportingsolution for Solvency II Internal Modelwww.secondfloor.com
2. eFramefor Insurance Solvency IIInternal ModelAn efficient, automated control and reportingsolution for Solvency II Internal Model 3. Benefits of choosing theInternal ModelInternal Modelimplementation challenges Insurers taking the Internal ModelWhen 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 placelacks the necessary documentation, controls andfor risk measurement and management, whichaudit trail to demonstrate its ongoing validity tocan be leveraged to support the internal modelthe 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 allcollection, reconciliation and validation anthree.arduous task even when a process alreadyBut even where an internal model is already wellexists 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 organisations ability to repeat, efficiently, theregulator. For most insurers, there is a lot of worksame 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 anstress-testingaccurate, consistent, quarter-by-quarter view of theorganisations risk profile. Manual effort a huge amount of time is spentmanually collecting data, performing calculations,reconciling and normalising data across businessunits, and producing the final report, which takesresources away from the day-to-day business Time constraints producing a SolvencyII report can take many weeks of coordinationeffort, making it hard to meet regulatory reportingdeadlines (typically 3-4 weeks after quarter end) Process bottlenecks when the report isbeing produced manually, there is a risk of datadelivery delays and query resolutions creatingbottlenecks in parts of the process. 4. An efficient, automated Taxonomy-driven data modelling creates a data model with standard, firm-wide definitionscontrol and reportingand 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 softwarespreadsheetsplatform 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 documentsSolvency 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 andaction 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 ansource system supplying the underlying data.organisation today, to provide a start point fordeveloping or modifying an internal modelapproachCapital calculation Consolidation SCR/ MCR CalculatorsESGActuals vs AppetiteScenarios/ Risk factors CapitalModel parameterseFrame LiquidityNarrativesFor InsuranceReportingSolvency IIDataInternal ModelORSATPQRTAssets TIME WINDOWDRIVENREPORTINGPROCESS CONTROL &AUDITABILITYRSR/SFCROperational lossesFinancial data eFrame works with aDataCalculators firms existing systems Cash Flow = PD x LGD x EAD to create a repeatable, Replicating Portfolio auditable process for DFA Internal Model-based reporting 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 benefitsSecondFloors Time Window-Driven Reporting Reporting deadlines met, everytimethat ensures Solvency II reports are completed,validated and submitted within the regulators 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 forFind out moreSolvency II, with a full audit trail and traceabilityfor every data point supplied and every actionTo 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 byreporting,creating trustworthy, auditable, repeatable reportsand business analytics that can be used to guidecontact us on +31 (0)20 6589 700,internal decision-making about risk appetite andemail us at [email protected],risk mitigation.or visit our website at www.secondfloor.comChosen by the worlds leadinginsurerseFrame is being used for Solvency II preparationand reporting by some of Europes 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 [email protected] to requesta demonstration or to discuss particularrequirements. 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 ofSecondFloors credentials that haveestablished it as a successful enablerof business analytics. eFrame,SecondFloors 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 [email protected] or simply visitwww.secondfloor.com