Turn XBRL from a Burden to a Benefit
Insurance firms covered by the Solvency II reporting framework are also required to provide additional ‘forward-looking’ reports, such as:
- ORSA (Own Risk Solvency Assessment)
- SFCR (Solvency and Financial Condition Report)
- RSR (Regular Supervisory Report)
Firms are also asked to demonstrate that the analysis behind these reports is integrated and embedded within their underlying risk management systems; that they are undertaking regular impact analysis of the firm’s solvency assessment and strategy and that this analysis is being reviewed by senior management via such frameworks as ORSA Dashboards.
Keeping the data underlying these reports up-to-date and accurate is difficult and for many companies and the consultants helping them, the process of producing the reports can also be very time consuming, tending to be a largely manual exercise, involving the ‘copying and pasting’ of data from different sources, which can introduce numerous inaccuracies into the data being reported.
Automating and Simplifying the Process
One quick and simple way to improve the process is to re-use the data that has already been collected in the Solvency II submissions (QRTs) These provide an initial platform on which to build a firm’s ORSA reporting framework and to ensure consistency and accuracy in the SFCR and RSR reports.
- The first step is to collect the Solvency 2 XBRL documents submitted to the regulator in a robust database environment
- The base Solvency data can be enriched and integrated with other datasets to provide the platform for ORSA reporting
- Users can then access and analyse the data using state of the art business intelligence tools, like Qlik, to produce relevant reports and dashboards.
Improving the consistency and accuracy of ORSA Reporting
‘industrialising’ the ORSA process like this ensures that the initial data is consistent with the latest Solvency II reports and that trends and issues can be visualised in a much simpler way.
The big plus is that it removes a lot of the time-consuming data collection and preparation for company analysts and external consultants. As a result, our clients can focus on the strategic level analysis of key risks and more detailed analysis of stress tests that may affect the company’s future solvency.
XT Database unlocking
the wealth of XBRL data
The XT Database was developed by UBPartner to make XBRL data,), available in a simple-to-use, low-cost platform. Flexibility is built-in, so that the XBRL data can be enriched with application specific metadata, such as EIOPA Solvency DPM codes, and combined with other datasets, to provide a complete platform.
The XT Database is already being used by banks and insurance firms but can handle any XBRL compliant reporting framework
Further information on the XT Database - click here
ORSA Reporting in Action
Actuelia, a leading French Actuarial consulting firm has used the XT Database to help it's clients with their ORSA processes.
What we are doing is 'industrialising' the ORSA process, which means the data is more accurate and up to date and that trends and issues can be visualised in a much simpler way. The big plus for our consultants is that it removes a lot of the time-consuming data collection and preparation.
- Frank Boukobza of Actuelia
See the recent Press Release.