Finance in Focus: Solvency II and its impact on the insurance industry
For European insurance companies, January 2016 marked the beginning of the first round of mandatory reporting under Solvency II. To be in compliance, insurers need to file regular reports with their national regulators that present a 360-degree view of a firm’s risk exposure. However, as experience in related sectors such as banking suggests, this requirement is only the beginning of what is likely to be ever-expanding demands from regulators for greater amounts of information.
Solvency II regulatory compliance became even more challenging for insurance firms in 2015, as regulators issued significant changes to their requirements for full measures filings due in 2016. Some software vendors who supply solutions to European insurers have been struggling to manage these new requirements—with some even withdrawing support altogether.
This podcast takes a deep dive into the world of Solvency II to answer several questions:
- Perhaps not everyone fully understands the Extensible Business Reporting Language (XBRL). Can you describe in simple terms what it is and how it makes a difference?
- Today we are talking about Solvency II; what part does XBRL play in the Solvency II story?
- Because the compliance date—1 January 2016—has lapsed, why should insurers still be interested?
- Can XBRL be used for doing other things besides compliance reporting?
- Tell us a little more about IBM’s capability in this area (the story behind the IBM Cognos Disclosure Management solution).
- What proof points demonstrate IBM’s strong track record?
- If insurers want to learn more, where should they look?
And for more information about Solvency II in insurance, explore these resources:
- Are you ready for Solvency II?
- A best practices guide for insurers to meet the Solvency II Pillar 3 reporting deadline
- Cognos Disclosure Management: Pain point relief for Solvency II regulatory reporting
This week’s host:
Tony Boobier is the IBM European industry leader for insurance and a well-known industry commentator and presenter who entered the insurance industry 30 years ago. When he lies awake at night, he thinks about the convergence of insurance and technology. During the day, he focuses on disruptive technology and financial technology in the insurance sector.
This week’s guest:
Hugh Wallis, Senior XBRL Strategist, Enterprise Disclosure Management, IBM
Follow Hugh Wallis on LinkedIn.