With the ever increasing cost of Pillar 3 reporting, this article estimates the growing effort required to comply with annual reporting. As a trusted advisor to insurers in Ireland and the UK, I would also like to inform you of a proven solution that reduces the workload and streamlines the costs associated with regulatory reporting.
Quantitative Reporting Templates (QRTs)
Although Solvency II is already live, the real test of insurers’ regulatory reporting processes and solutions will be in meeting the annual reporting requirements due 20th May 2017. Reporting the annual QRTs under Solvency II Pillar 3 is going to be far more onerous than the quarterly QRTs due to the following reasons:
The number of facts to be reported annually is a lot more significant and could even grow in the years to come. BearingPoint estimates roughly 18,400 data points are required in annual reporting compared to 1,500 in quarterly reporting.
The aggregation of all facts collected also requires a high level of standardisation of the description of each and every piece of data.
There are six times as many validation rules required for the annual QRTs as the quarterly QRTs.
Validation complexities increase as facts are inserted in a web of cross QRT relationships that must be consistent with one another.
Further workload impacts to expect:
Our team of Solvency II consultants in Dublin, backed by our award winning Solvency II Pillar 3 regulatory reporting solution – ABACUS/Solvency II – are helping our clients to ensure compliance, reduce the cost of regulation as well as the risk of the onerous annual and quarterly reporting. Our clients recognised that regulatory operations and specifically Pillar 3 reporting are a non-competitive differentiator so partnered with BearingPoint to effectively outsource Pillar 3 reporting. To reduce the regulatory burden on insurers, BearingPoint offers a combination of regulatory reporting consulting with a proven, reliable, and future-proofed software solution suite and provides services such as regulation as a service (RaaS), regulatory factories, and onsite training. As part of its regulatory maintenance service, BearingPoint provides ongoing updates in line with changing regulations to enable our clients to comply with all of the Central Bank of Ireland’s requirements and comply rapidly with ever-changing requirements.
With more than 20 years experience in regulation BearingPoint assists financial institutions, regulators and central banks to increase the efficiency of regulatory reporting and associated data management. BearingPoint’s RegTech products and services are trusted by over 4,400 firms worldwide.