The European Insurance and Occupational Pensions Authority (EIOPA) published a report that examines the steps taken by authorities to improve the quality of Solvency II reporting data over the years.
The report analyzes more than 130 individual and granular submissions that EIOPA has received since the introduction of Solvency II reporting. The report describes the intensive and wide usage of Solvency II data by EIOPA for internal analysis, such as individual insurer or group assessments, statistical publications, impact assessments, financial stability and consumer protection studies and to substantiate policy technical advice and various other publications. The report notes that the automated data quality processing solutions and advanced analytic tools together with built-in validations in the XBRL taxonomy have been effective in raising the quality of data. Multiple key performance indicators and an overall data quality score show significant improvements over the years. The analyses has found that the quality benchmark indicator for annual prudential solo reporting rose from 82% back in 2016 to 94% in 2020. The report highlights that consistent use of the Legal Entity Identifier (LEI) and the unambiguous reporting of investments in the list of assets has increased the quality of the Solvency II reporting information. The report shows that even if it is difficult to accurately measure data quality, the implemented indicators prove a significant increase in the data quality since 2016.
Keywords: Europe, EU, Insurance, Solvency II, Reporting, XBRL Taxonomy, LEI, Data Quality, Financial Stability, EIOPA
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