About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Solving the Outstanding Pain Points of Solvency II

Subscribe to our newsletter

Solvency II continues to trouble insurance firms and asset managers, with many insurers still using manual workarounds and struggling to get the fund look through element of the regulation right despite the elapse of nine months since the compliance deadline on January 1, 2016.

The ongoing pain points and potential benefits of a successful Solvency II implementation were the subject of a recent A-Team Group webinar providing a Solvency II update and considering how effectively firms are meeting the regulatory data requirement. The webinar was hosted by A-Team editor Sarah Underwood and joined by Andy Adams, head of financial regulatory services for EMEA at Thomson Reuter; Chris Johnson, head of product management, Market Data Services at HSBC; and Dennis Slattery, CEO at EDMworks.

The panel kicked off with a state of play report on Solvency II, noting that while firms subject to the regulation have compliance solutions in place, they are not necessarily running well and more work is needed. A poll of webinar participants reflected these views, with 50% of respondents still using numerous manual workarounds, 33% using a few manual workarounds, 11% implementing an automated solution and 6% having implemented an automated solution.

Pain points reported in a second poll include the fund look through element of the regulation, reporting, governance requirements and capital calculations. Considering the look through element, the panel agreed that the tripartite template has helped somewhat, but problems persist in gathering and managing large volumes of data that are often inconsistent.

Focussing on reporting, Adams described the difficulty of gathering all the data required for quarterly reporting and said this will only become more difficult as the European Insurance and Occupational Pensions Authority (EIOPA) gradually reduces the number of weeks in which reports must be made from eight weeks in 2016 to five in 2019. One solution offered by Adams is to change the data requirement to cover data that is one-month old and therefore easier to gather, but suggestions along these lines have previously been rejected by regulators.

Looking at the upside of Solvency II, a third poll showed many firms that have implemented compliance solutions gaining some operational and business benefits. These include the ability for insurers to clean up balance sheets on the basis of better data, develop master data files that ease reporting, and spin-off other data management tasks such as the creation of shareholder disclosure reports.

To find out about:

  • Progress on Solvency II
  • Outstanding pain points
  • Potential solutions
  • Beneficial outcomes

You can listen to the webinar here.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Best practices for creating an effective data quality control framework

Data quality is critical to capital markets processes from identifying counterparties to building customer relationships, regulatory reporting, and ultimately improving the bottom line. It can also be extremely difficult to achieve. One solution is a data quality control framework that includes an automated and systematic process that monitors the state of data quality and ensures...

BLOG

Exchange Data International Releases Readable Corporate Action Notices

Exchange Data International (EDI) has released Readable Corporate Action Notices (RCAN), a solution designed to enable personnel in front- and middle-office buy-side firms to read corporate action notices in the same way as they read news. RCAN is based on machine learning and was developed by EDI. It covers 45 corporate events, including dividends, mergers...

EVENT

TradingTech Summit London

Now in its 12th year the TradingTech Summit London brings together the European trading technology capital markets industry, to explore how trading firms are innovating in today’s cloud and digital based environment to create flexible, scalable trading platforms to support speed to market and business agility.

GUIDE

Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...