Solutions
Solvency II Health Checker
Your report through a regulator's lens
Under the Solvency II mandate, the European Insurance and Occupational Pensions Authority (EIOPA) as well as national supervisors request extensive, detailed information from insurers to ensure adequate equity. The Solvency II Health Checker examines insurers' filings prior to submission to highlight data points that could require special attention under the Solvency II mandate.
Insurers who are deemed insolvent are likely to trigger close scrutiny by the national supervisor or EIOPA. Deloitte's Solvency II Health Checker can help you avoid possible questions by highlighting areas that may draw the EIOPA's attention.
The regulator’s lens
The national supervisor evaluates the health of your organization by running two types of tests on your data using the EIOPA-adopted XBRL format, which enables efficient processing of financial information in digital form.
The first test verifies the quality of the data to check whether the dataset meets all technical validation rules as defined by the EIOPA (e.g. paid claims across different lines of business match the total claim amount). If your data fails these checks, it could indicate that your control of the data submitted and the underlying processes are insufficient.
During the second test, the supervisor runs a content evaluation, which looks at the actual data reported (e.g. verifying that the value of technical provisions and the amount of premiums is allocated to the correct portfolios). This should be consistent with the overall balance sheet and profit and loss (P&L) account. If this test fails, it could trigger a closer inspection of your insurance entity.
Solvency II Health Checker
Deloitte’s Solvency II Health Checker validates your report against the technical validation rules as documented by EIOPA. It checks the structure of the data against the EIOPA templates and the consistency between the data points.
In addition, Solvency II Health Checker incorporates custom business rules at the EU, country, and client levels to assess your company’s performance/risk profile. The assessment's vast amount of data can be harvested to improve your business.
The result of the Solvency II Health Check is an easy-to-use Excel spreadsheet that shows all of the data in your Solvency II report, highlighting technical validation errors and pinpointing data points that might trigger closer inspection. The findings will be discussed with you by a Deloitte member firm domain expert. Executing the health check on your data provides an opportunity to fix errors in your report prior to submission.
Why Deloitte
Deloitte's member firm network supports many insurance entities in different countries in improving their regulatory programs providing an in-depth understanding of the regulations and the challenges that insurance entities face. Our member firms bring extensive XBRL digital reporting experience. Deloitte’s XBRL specialists advise both public and private sector clients in the adoption and implementation of XBRL. Deloitte XBRL specialists across our European member firms have applied their collective experience to formulate the custom rule sets in the Solvency II Health Checker to offer this solution to our clients.