Solvency II Regulatory Guidance

What is Solvency II?

Solvency II is a regulatory reporting requirement set forth by the European Insurance and Occupational Pensions Authority (EIOPA) that impacts the insurance industry in the European Union (EU) and United Kingdom (UK).

Solvency II requirements for insurance companies in the EU and the UK include an increased level of reporting, enhanced risk disclosures, deeper data granularity, and additional security characteristics.


Why is Solvency II important?

EIOPA’s Solvency II main objective is to ensure that insurance companies hold sufficient economic capital to protect the policyholders, as it aims to reduce the risk of an insurer being unable to meet its financial claims.


How does Clearwater Analytics help?

Clearwater’s automated, integrated, accurate, and transparent solution seamlessly navigates Solvency II challenges while streamlining investment accounting, reporting, and analytics. Clearwater’s solution for Solvency II includes the application of EIOPA business validation to promote an accurate and efficient filing process, inclusion of supplementary client-specific data points, and provision of EIOPA’s three-pillar reporting requirements:

  • Pillar 1 – Quantitative Requirements: Risk-based capital requirements calculations with assets and liabilities being valued on a market-consistent basis, Solvency capital requirements (SCR), and Minimum capital requirement (MCR).
  • Pillar 2 – Governance and Supervision: Management of Risks and Governance contains the Own Risk Solvency Assessment (ORSA) requirements for the governance and management of potential risks for the insurers.
  • Pillar 3 – Disclosure: Reporting and Disclosure defines the reports that insurers must submit to the national regulator.

Learn more about how Clearwater Analytics can help with investment accounting and reporting by scheduling time to speak directly to an expert.