Facilitate your Solvency II compliance and manage risks efficiently

• Enhancing the protection of policyholders and beneficiaries: Ensuring that insurance companies are financially capable of meeting their obligations to policyholders.
• Deepening the integration of the EU insurance market: Facilitating a more uniform and efficient European insurance market.
• Increasing the international competitiveness of EU insurers: Helping EU-based insurers to be competitive on a global scale through a robust regulatory framework.
• Promoting better risk management: Encouraging insurers to improve their risk management practices and capabilities.
• Ensuring better regulatory supervision: Providing a framework that promotes a consistent approach to supervision across EU member states.
• Increasing transparency and accountability: Improving the transparency of insurers’ financial positions and operations both to regulators and the public.

The three pillars of Solvency II are designed to enhance the regulation of the insurance sector in Europe:

• Pillar I: Quantitative requirements – This pillar requires insurers to maintain sufficient capital to cover the risks they undertake. It includes the evaluation of the balance sheet, the Solvency Capital Requirement (SCR), which is the capital needed to absorb significant losses, and the Minimum Capital Requirement (MCR), which is the minimum safety threshold below which the insurer’s solvency is considered inadequate.
• Pillar II: Governance and supervision – It mandates that insurance companies have robust governance systems and conduct their own regular Risk and Solvency Assessment (ORSA). This pillar focuses on the quality of risk management, strategy, and the regulatory supervision process.
• Pillar III: Transparency and reporting requirements – This pillar requires insurers to publish detailed information about their risk profile, governance system, and solvency. This includes the regular publication of Solvency and Financial Condition Reports (SFCR) to inform the public and supervisory authorities.

Capital Modeling helps you reach Solvency II compliance across all three pillars: capital, governance and reporting.

There are 5 steps:

• Step 1: Data Collection and Management Efficiently gather all necessary data inputs from various sources, formats and data connections, ensuring perimeter completeness. Manage data flows seamlessly between different transformation steps, maintaining traceability and integrity. Embeds data quality checks on data input. Access dashboards for data quality restitution, data overview and analysis. Add input step for each team.
• Step 2: Calculation and Analysis Use our advanced actuarial libraries, completed with various use cases, to perform all required calculations with precision. Our integrated tools support complex actuarial models, providing robust and reliable results. Design features allow to customize the solution to fit your products mechanisms. All along the closing process, dashboards allow to present standard indicators to understand, communicate and monitor key indicators related to valuation, projection solvency.
• Step 3: Reporting and Compliance Generate comprehensive reports that meet all regulatory requirements. Ensure compliance with Solvency II standards, providing transparent and detailed documentation for auditors and stakeholders.
• Step 4: Review and Decision-Making Analyse generated reports to make informed decisions. Our solution offers real-time insights into business impacts, profitability, and risks, aiding in strategic planning and business steering. Accurately model the different stress test scenarios set by the regulator or by the company’s executive board. Compare results for each step. At the end, compare some scenarios.
• Step 5: Continuous Improvement & operational risk adjustment Implement feedback loops to continuously improve the actuarial processes and models. Stay updated with changing regulations and adapt swiftly to ensure ongoing compliance and efficiency. Get the granularity in risk measurement you need for Solvency and for coming IFRS17 frameworks.

Our Capital Modeling solution helps you stay compliant with evolving regulations while ensuring technical excellence through seamless access to key figures, validations, and digitalized workflows. By accessing actuarial model libraries and comprehensive resources, you optimize profitability and manage risks more effectively. Capital Modeling also contributes to your Solvency II assessments, valuations and risk management to make you save more time.