Solvency II by iFACTS

The Solvency II directive is a challenge for the insurance industry. Instead of inventing a specific solution, iFACTS offers a universal governance approach to Solvency II based on the iFACTS Lean Governance technique in combination with INSMAN.

Three pillars of Solvency II2 

Governance support for Solvency II

Solvency II and its challenges have been on the agenda of insurance companies in recent years. The industry requires a new, versatile governance structure.

Multiple participants, such as independent auditors, risk experts and financial resources, must be involved.

Lean governance approach

Rather than inventing a specific process and functionality for Solvency II, organizations can utilize a universal governance technique. Lean Governance by iFACTS is proven in several areas such as risk management, IT governance and compliance with regulation, for example FFFS.

INSMAN, insurance management, and Lean Governance support the workflow in Solvency II pillars 1-3. INSMAN holds important measurements online such as claim information and reserves, IBNR, premium reserves and related data for pillar 1. Lean Governance supports policies, risk management, event reporting, board decisions, KPI follow-up, control and audit that are specified in pillar 2. The iFACTS software as a transparent IT-solution supports the disclosure and reporting requirements in pillar 3.

 

Solvency II and Lean Governance3The combination of INSMAN and Lean Governance by iFACTS, provides an effective tool when managing Solvency II.

 

Important metrics include

 

Solvency II important metrics2

  • Premium reserve
  • Sum insured
  • Claims reserve
  • Solvency /Minimal capital requirement
  • Investments
  • Outsourcing compliance level
  • Solvency II overall compliance level
  • Captive yearly milestone progress status

 

Solvency II main elements

Solvency II main elements2Information — Document all relevant captive and insurance information. This includes organizational roles, group and reporting information etc.

Measurement – Document online measurements in INSMAN that are required in pillar 1, for example group coverage information, premiums, reserves etc.

Risk register — Support for the Solvency II risk handling, including risk scenario assessment, categorization, mitigation activities, follow up, role-based approvals,
reports etc.

Governance and operational manual — Gather Solvency policies, plans and procedures in a structured and transparent order. Create an operational manual and online measurements to check compliance.

Notifications and approvals of milestones and other activities — risk register, compliance plan, internal control plan, board approval of internal guidelines etc.

Event reporting — Support for registering, handling, reporting and event follow-up such as incidents, accidents, BI-related events (business intelligence), and board decisions. 

ORSA — Support your customized ORSA report (Own Risk and Solvency Assessment).

Internal control and audit — Information portals for internal control and audit to access information online and create control programs.

Compliance — Access to customized control programs to check compliance for regulation, outsourcing, internal policies etc.

Reporting – Dynamic and powerful reporting functionality including access control, date control and automatic update. Support for the disclosure and reporting requirements in pillar 3.

 

Solvency II package by iFACTS

The package is designed to help organizations efficiently and rapidly document Solvency II. We assist you with your ongoing Solvency II processes.

The package contains:

  • Project start-up
  • Software configuration
  • Reports and other output
  • Training and education
  • A roadmap for implementation