Expertise: Regulatory reporting solutions > Solvency II
Achieve Solvency II compliance using one unified solution
What is Solvency II?
Since the introduction of the harmonised Solvency II capital requirement regime, all European insurance companies have followed the same capital requirements. These were designed to reduce the risk of insolvency, and the regulatory requirements cover financial resources, risk assessments and management, supervision, reporting, governance and accountability and public disclosure.
The three pillars of solvency standards
To protect consumers, insurance companies must adhere to solvency standards represented in three pillars:
Insurers must demonstrate they have sufficient financial resources to meet all potential liabilities.
Insurers are required to take the Own Risk & Solvency Assessment (ORSA) into consideration.
Quarterly and annually, insurance companies must provide their local regulator with a suite of reports.
What are the three pillars of Solvency II?
Pillar 1: Demonstrating your business can meet potential liabilities
A risk-responsive capital measure – the Solvency Capital Requirement (SCR) – is calculated to ensure that insurers have a 99.5% probability of fulfilling their obligations for the next year.
The SCR helps insurers plan how much capital they should hold, and whether or not they can afford to continue writing further business.
Pillar 2: Short and long term risk management
The ORSA is evidence of the processes and procedures insurance companies have in place to review short- and long-term risks.
The aim is to determine whether the necessary funds are available for the organisation’s solvency needs.
Pillar 3: Regular Solvency Reporting
In the UK, this is The Bank of England, and they require proof that an insurance company is meeting their Solvency II obligations. This disclosure is necessary for supervisory purposes, and to ensure complete transparency.
Reports such as the Solvency & Financial Condition Report (SFCR) and Quantitative Report Templates (QRTs) are required for submission, both for regulators and the public.
We work with a unified solution that covers all three pillars in one software, instead of juggling multiple-point solutions for each Solvency II pillar. Modern, unified solutions store data in a central location, offering the ability to produce dashboards and reports that benefit the wider business.
We can help you:
- Achieve an automated, integrated, end-to-end Solvency II process
- Migrate to a fully supported and maintained solution
- Automatically stay compliant with the regular updates made to the Solvency II regulations.
Halma Plc - Finance Technology Manager
"Straight from the kick-off we had confidence that VantagePoint would deliver...
We are delighted to have continued our strong relationship post delivery and would have no hesitation in considering VantagePoint for future projects."