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How can firms achieve consistency in reporting and data practices throughout business lines?

It is important for firms to ensure that data definitions are consistent and understood across the business in order to achieve consistency in reporting. Firms need to identify all data items provided to the SCR and assign ownership as well as to classify data and data quality checks based on materiality and risk. Likewise, a data quality framework is needed to provide clear guidance on what constitutes accurate, complete and appropriate data to all business units. Consistency can be also achieved where expert judgment is applied to data and the right process is in place to identify inconsistencies and issues.

Businesses are not used to reporting Solvency II data, thus, the key question to post Solvency II implementation is utilising data effectively. It is evident that the granularity and detail of Solvency II reporting raises challenges for businesses and regulators. The main challenge is to align reports (e.g. narrative reports) to how business is managed to derive value from the data which can lead to greater understanding of capital implications and risk of decisions. In comparison, the main challenge for regulators is to identify consistency across the sector when adjustments are particular to each business.

What are the business requirements you have to be aware of?

There are particular key questions that businesses need to take into consideration. All of the below questions apply equally for 3rd party data. It is a fact that we increasingly rely on others for data sources such as Bloomberg and Experian. However, there isn’t any assurance that data is accurate, complete, appropriate and timely.

Do you know what data is used in your critical process? Do you have quality built in? Are there agreed standards between the producers of data and the consumers of data?Is your data owned, who is responsible for providing assurance for quality? This question must be in the 1st line of defense. Moreover, it is essential to find out how data is changing in your change programmes and the level of control over the migrations from legacy to new systems. Last but not least, the feedback given by your employees about your data is critical for the business.

How do you define data and what does it mean for each function in the organisation?

Common definitions of data and data quality are vital; nevertheless, data can be defined as the differences in how data is talked about and used across functions. For example, L&P talk about claims and similarly actuaries talk about morbidity. Functions and business units should be accountable for the data generated and provided to internal and external customers. Each function should generate data that drives customer outcomes or management information or business analytics. Data should add value! However, all data in business units should be underpinned with data protection and data quality by Risk and Data Governance.

How different stakeholders can transform data and how it affects their work?

The challenge is to ensure data quality throughout the transformation. Processes that pass data between business units and stakeholders should have a data quality handshake documenting data quality criteria. Therefore, data transformation affects stakeholders work through data lineage: as data moves through a process it is transformed.

Consequently, different stakeholders should own the data as it moves through their process and ensure that outputs of transformation conform to data quality requirements and add value. Under these circumstances stakeholders need to ensure that there are data quality controls in 3rd party data and manage risk through spreadsheets and End User Computing standards, reducing manual entry on databases.

What would you like to achieve by attending the Pillar III Reporting and Data Quality conference?

Attending the Pillar III Reporting and Data Quality conference will give me the opportunity to meet and make contact with active practitioners and senior level decision makers from the leading and most innovative companies. I look forward to sharing “war” stories with industry colleagues and learning of successes in this field.

Ahead of the Pillar III Reporting and Data Quality conference, we spoke with Mr. Roger Dix, Chief Risk Officer at Wesleyan about consistency in reporting and data practices.

Practical Insights From:

Ana Moutinho
Principle Expert on Solvency II
EIOPA
Varun Verma
Head of Solvency II Reporting
AIG
Lewis Webber
Head of Insurance Data Analytics Division
Prudential Regulation Authority
Alana Clark
Head of Financial Policy and Control
Barbican Insurance Group
Dinant Veenstra
Policy Adviser
DNB

About the conference:

This marcus evans conference will enable insurers to drive improvements in reporting and data frameworks now that Pillar III reporting has gone live enabling progression into business as usual and unlocking commercial value from data. The Pillar III Reporting and Data Quality conference will take place from the 22nd until the 23rd of September 2016 in London, United Kingdom.

About the speaker:

Roger Dix joined Wesleyan in February 2013 as Chief Risk Officer. He has spent more than 35 years within the Insurance and Reinsurance sector. An actuary by qualification, he has worked in Risk for eight years and has been actively involved in shaping this part of the industry as it develops. He has previously worked as Chief Risk Officer at LV and the UK Life arm of Aviva. Roger heads the team managing the Society's risk and compliance activity as Wesleyan enters a new stage of its growth programme.

Consistency in Pillar III Reporting and Data Practices

An interview with Wesleyan

Roger Dix,
Chief Risk Officer at Wesleyan