BR-AG | Senior Business Analyst, Practice Lead
The Taxonomy Update 2.8.0 represents the most significant overhaul of reporting templates since the Solvency II regulation came into force in 2016. This release is mandated for use by European (re)insurance entities from the reference period of Q4-2023 through 2025, with no further updates planned for 2024 currently.
In March 2023, EIOPA released the final version of Solvency II data point model (DPM) and Taxonomy 2.8.0, and the 2.8.0 Hotfix on 13 October 2023. For the reference period from Q4-2023 PEPP will use 2.7.0 release and IORPs will use 2.7.0 or 2.7.1 release.
In February 2024, EIOPA published an update of the exclusion list of validation rules. Also, an update of the filing rules document has been published: it clarifies rule 3.1 on multicurrency reporting.
Participants brought up concerns regarding the effectiveness of XPATH general filters in validation rules for specific software products.
Concerns were raised regarding the artificial keys found in S.14.01 and S.14.02, as they appear to exhibit a many-to-one relationship contrary to the requirement for uniqueness stipulated by filing rules. Additionally, there were observations about the absence of validation rules in S.17 and SE.17 templates, leading to errors when NCAs transmit converted data to the ECB. EIOPA will investigate these matters.
An updated List of known issues prepared by EIOPA is available here.
European (re)insurance entities have been meeting their quarterly and annual reporting requirements since the introduction of Solvency II using powerful RegTech, such as our reporting tool – ATOME Particles.
Elevate your efficiency levels with our ATOME solution, ensuring compliant regulatory reporting – every time, on time.
The Central Bank of Ireland (CBI) published the slides of the Solvency II taxonomy 2.8.0 workshop for regulatory reporting held on 17 October 2023.
The presentation slides feature illustrated instances of several new templates intended to serve as reference materials for preparing reports with reporting dates starting from December 31, 2023.
On 13 December 2023, the CBI published its quarterly Insurance Newsletter for Q4 2023 covering a range of topics of note for Irish (re)insurers (the Newsletter). Key priorities for the CBI include the ongoing assessment of Solvency II, work on the implementation of EU legislation (e.g. the Motor Insurance Directive), the review of the Domestic Actuarial Regime, and continued work related to climate change, sustainable finance and the ethical use of data. The CBI also highlighted the growth of the digitalisation of financial services and the CBI’s commitment to enhancing comprehension of innovation within the insurance industry.
The consultation paper CP12/23, Review of Solvency II: Adapting to the UK Insurance Market, was recently released by the Prudential Regulation Authority (PRA). This thorough document, complemented by draft rules and adjustments to supervisory statements in the appendices, presents substantial modifications to Solvency II with the goal of establishing a fresh regulatory structure for insurers operating in the UK, known as Solvency UK.
The Prudential Regulation Authority (PRA)’s proposals and the key benefits covered by this consultation include:
- Streamlining and improving the Transitional Measure on Technical Provisions (TMTP) calculation to reduce costs and complexity for firms.
- Introducing a more efficient set of regulations for internal models (IM) used by insurers to calculate their capital requirements.
- Enhancing flexibility for insurance groups in calculating group solvency requirements, thereby enabling more flexibility in the development of group IMs and allow a better reflection of underlying risks.
- Removing specific requirements for branches of international insurers operating in the UK to ease entry or expansion and enhance the global competitiveness of the UK insurance sector.
The consultation comment period is now closed. So the proposals contained in CP 12/23 are likely to be implemented for 31 December 2024 year ends. Although affected firms may incur some initial costs, the PRA expects the long-term reduction in compliance costs to substantially outweigh these.
The government aims for Solvency UK to foster a more competitive and vibrant insurance industry in the UK, all the while upholding robust standards of policyholder protection. These reforms, integral to a broader package, will be enacted through governmental legislation and PRA regulatory adjustments. Certain reforms are slated for implementation by year-end, with the remainder scheduled for 2024.
Sign up for our RegTech Newsletter to get all the latest regulatory updates directly in your inbox.