During the latest workshop of the series “Taxonomy Meets the Market” on February 8, EIOPA together with the National Competent Authorities (NCAs), insurance undertakings, software providers, discussed and presented new developments on regulatory reporting and the upcoming 2.8.0 taxonomy release.
January’s expected release of the final version of taxonomy 2.8.0 with validations is postponed to 17 March, 2023, and the 2.8.0 Hotfix, if needed, latest in July 2023. Instead, the 3rd version of Public Working Draft (PWD3) was published to consult market participants.
Due to the scope of changes stemming from a comprehensive review of the Solvency II Directive, it was decided that the 2.8.0 release will be preceded by a number of PWDs.
As EIOPA stated, this approach would allow filers to have more time for implementing their reporting solutions. While the first two PWDs introduced modelling changes to the Solvency II model, PWD3 focuses on providing revised validations and familiarising users with the new structure of the published materials.
For the reference period between Q4-2023 and Q4-2024 PEPP will use 2.7.0 release and IORPs will use 2.7.0 or 2.7.1 release. See the full EIOPA Taxonomy Roadmap here.
According to the Governance of Taxonomy Releases, the EIOPA Solvency II DPM and the XBRL taxonomy package 2.8.0 release are to be used from 31/12/2023 until a new version is announced.
The major amendments touched the set of modules and templates. When it comes to the templates, the changes led to the following outcomes:
- Re-design of cross-border reporting.
- Introduction of climate-related reporting.
- New template dedicated to cyber risk.
- And changes to internal models templates.
According to given statistics regarding the scope of amendments made by EIOPA to the templates – around 80 are revised, 40 are added and 30 templates are removed. Currently, the 190 unique tables exist in the 2.8.0 release.
Among other significant business changes, the upcoming inclusion of the Financial Conglomerates Reporting package is expected to be applicable by the end of 2023, to support the reporting of the new requirements by the regulated entities or mixed financial holding companies that wish to use it, including other EIOPA regular data requests that may potentially occur.
Also, the revised Decision on Institutions for Occupational Retirement Provisions (IORPs) Reporting is planned to be applicable by January 2025.
Over the last years the content and complexity of the EIOPA reporting taxonomy have significantly grown. Different reporting packages have been incorporated into the same taxonomy enabling more consistency, maximising the value of single data dictionary, change management features and consultation options.
In 2022 EIOPA started to use dedicated technology to support the taxonomy developments. ATOME Matter collaborative metadata management and modelling platform now helps EIOPA in managing the regulatory reporting requirements for insurance and pension funds sector in the EU, in particular in the process of production of data models (DPM) and XBRL materials, as well as in collaboration when changes and updates are planned and introduced in subsequent cycles of reporting.
For more information please see ‘Plan for reporting taxonomy releases’ (p.3) published by EIOPA, available at the following link: https://www.eiopa.europa.eu/sites/default/files/plan_for_reporting_taxonomy_releases.pdf
As a supervisory authority EIOPA manages the ever-larger volumes of data and faces not only the need to communicate any changes to the market efficiently and clearly, but also to make sure that the quality of data is maintained even as the volumes grow and to adjust its internal workflows and data collection processes accordingly.
Contact us to discover how ATOME helps regulators and reporting entities to accommodate regulatory change, keep reporting quality high and the reporting burden as low as possible.