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What is Solvency II

Solvency II is the most significant regulatory change for the insurance industry in a generation.  One of the greatest challenges is how to meet the documentation standard for internal model approval.  Failure to have a good handle on documentation could jeopardise the use of an internal model with adverse implications for capital.

Solvency II requires Insurance Companies to maintain a prescribed amount of capital. One of two approaches may be taken to calculating the solvency capital requirements: the standard formula, or an internal model.  In order to use an internal model, the insurance company must gain approval from the regulator.  To gain that approval, the internal model needs to meet six standards, one of which relates to documentation.  The documentation standard is very wide ranging, and actually encompasses the other five standards too (the use test, statistical quality, calibration, profit and loss attribution, and validation). 

Documentation and Solvency II

Documentation is the prime method of demonstrating compliance to the FSA.  The level of documentation required, both in depth and in breadth, significantly exceeds current industry best practice, and to achieve the standard will require a step-change in documentation.  This includes not just the documentation itself, but also the controls around the documentation.

At present, documentation is likely to be held in many different forms within the division: on network directories, on SharePoint sites (mainly for projects) to name a few. To achieve the level of robustness and control required to meet the SII documentation standard, a common documentation platform is required. This includes ensuring all relevant staff can clearly point to the current version of documentation and apply its use consistently and correctly. Another aspect is the publication of updates and version controlling.

AutoRek's Document Management System

We have developed a Solvency II system based on Microsoft SharePoint - a central and secure document management solution giving you:

• Automated and managed approval and sign-off processes
• Auditing to report on access and modifications to documents
• Integrated security ensures controlled access to content with full auditing capability
• Seamless enterprise search enabling search by various properties and contents of the document
• Easy to understand document versioning including major/minor version numbers
• Easy creation of documents using most important templates 

Find Out More

Contact Us to find our more about our Solvency II Document Management System