Eliminating spreadsheets in the reporting process

The challenge

The client required a transformational improvement in the end-to-end Solvency II reporting process, due to concerns surrounding the implications of Brexit and the subsequent potential divergence of reporting regimes. This would in effect mean that the client would potentially have to report Solvency II twice (under both EU and UK), which they termed as “Dual Reporting”.

The existing process required significant manual effort and a large number of spreadsheets; the teams were already stretched with limited contingency in the working day timetable which would have been exacerbated under dual reporting.

Our approach

Our objective was to ensure that:

• Our client could confidently meet the quarterly and annual EU and UK Solvency II reporting timelines
• Capital sensitivities and capital forecasts could be delivered in an efficient and timely manner to facilitate Stress and Scenario testing, Business Planning, ORSA, etc.
• More insightful analysis on capital forecasts and sensitivities, and performance measurement were available
• Processes and controls were materially improved and cost efficiencies delivered

This was achieved by:

• Upskilling the team through training and development, reviewing the mix of team members’ skills to facilitate agile model maintenance and analysis, and evolving the culture to focus more on value-add activity and continuous improvement
• Limiting the use of Excel in production environment, being agile to allow timely changes in a controlled environment, accelerating end-to-end processes with capacity to deliver larger number of Solvency II results and maintain a high level of user understanding (i.e. no blackbox solution)
• Ensuring that processes are efficient, easy to maintain, and well documented. Automating controls with emphasis on preventative controls and standardising processes, reporting formats and documentation