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Check out this interesting presentation on the implementation of integrated statutory and solvency II pillar 3 reporting processes at TVM. TVM is proud to be the first European insurance company to have fully integrated and standardized statutory and solvency II reporting processes producing auditable and traceable data !!
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Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
TVM
Integrated statutory and solvency II reporting with Tagetik at TVM
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
AGENDA
A. Profile of TVM
B. The challenges TVM faced
C. The decision for Tagetik
D. Project approach: Statutory reporting and Solvency II
E. The result
F. Lessons learned / tips & tricks
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Profile of TVM
A. Founded in 1962
B. Leading Dutch insurance company specialized in European insurance of transport and mobility
C. Growth strategy. Recently acquired several Dutch transportations insurance companies (i.e. Noord Nederland Scheepsverzekeringen, SON and OVZ)
D. Offers both non-life (i.e. motor vehicle liability and transport insurance) and life (income protection) insurance products
E. ± 400 FTE
F. 2 solo insurance companies, approx. 30 entities
G. Branches in Holland, Belgium, Luxembourg, Denmark, France and Germany
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
A. Reporting environment before implementation Tagetik
B. Reporting environment consisted of linked excel sheets with a large number of manual entries needed, resulting in long closing periods and a poor audit-trail
C. Solvency I reports manually generated (no ETL). Management information system not disclosed
D. Solvency II resulted in an increasing demand for a uniform and efficient reporting environment
The challenges TVM faced
Sources
Polisadministraties
Projectiesystemen
Grootboek
Kasbank/ beleggingen
Etc..
Financial statements
Solvency I
Management reporting
Reporting processes not ready for
Solvency II pillar 3
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
The decision TVM made
A. TVM made a strong decision to replace its current excel reporting environment for Tagetik, a uniform, one-version-of-the-truth, consolidation and reporting environment
B. One single solution for both statutory, solvency II and internal management reporting
C. The main reasons why TVM chose for Tagetik:
A. Tagetik offers all functionality needed for TVM
B. Pre-built solution for Solvency II pillar 3
C. Good customer references (i.e. SNS REAAL)
D. Competitive price
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Key features of Tagetik for TVM
A. One uniform consolidation and reporting environment for all entities
B. Fully automated consolidation and reporting, minimum need for manual entries and corrections
C. One single solution for data collection, (historical) data storage, entry forms, consolidation and reporting
D. Built in financial controls and validations
E. Traceability and auditability
F. Solvency II starter kit that enabled TVM to make an important step in the implementation of pillar 3
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Key features of the Tagetik solvency II starter kit for TVM
A. Pre-defined application covering all QRT’s, reports, entry forms and calculations (partly) for the SCR and MCR aligned with the latest regulations from EIOPA for Solvency II pillar 3
B. Pre-built in validations as described in EIOPA’s log files
C. Integrated solvency II and statutory reporting environment. Single source reporting
D. Traceability and transparency of reported figures for Solvency II
E. In future, automated export of pillar 3 information to XBRL format (no more manual entry in E-line of other regulatory systems required)
F. Possibility to add company specific validations/ reports and analyses
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Project approach TVM - roadmap (1)
organisation and control
Visie
Implementation of statutory reporting in Tagetik
Stage 1
Implementation of Solo QRT’s with the Tagetik
starter kit
Implementation of Group QRT’s with the Tagetik starter kit
Implementation of management reporting in Tagetik
Uniform, single-source, efficient reporting environment for both statutory, solvency II
and management reporting
Current status
Stage 2
Stage 3
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Project approach TVM - roadmap (2)
A. Stage 1: Statutory reporting
B. Stage 2: Solvency II Solo reporting
C. Stage 3: Solvency II Group reporting and mgt. reporting
… With a staged approach TVM was able to benefit fro m Tagetik for statutory reporting in short termAlso, TVM was able to manage the relations between statutory reporting and Solvency II reporting
because parts of the Solvency II QRT ´s elaborate on statutory data
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Stage 1: statutory reporting (1)
A. Scope:
A. Statutory reports (quarterly and yearly financial statements)
B. Actual, budget and forecast figuresC. Data from G/L collected by ETL, other data sources
manual entry in TagetikD. In future stages other sources can be disclosed to
Tagetik by ETL
… A key success factor in projects like this is to h ave good insight into the relations between the reports and to start with a clear and p referably small scope
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Stage 1: statutory reporting (2)
Design Added value
Reports One set of standard reports that can are re-used for each
entity
Re-use of the same data element in several reports to assure
data consistency
Validations Built in validations to assure data quality
Dashboard to monitor data quality
Mapping Built in automated mapping for all entities
Formatting One standard formatting for all reports
Easy to use template for future reports
ETL Automated data load from G/L to Tagetik, no more seperate
data files and a minimum number of manual entries needed
Intercompany Automated consolidation and intercompany elimination
Dashboard report for intercompany differences
Processes Audit-trail of changes visible in Tagetik
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Project approach TVM - roadmap
A. Stage 1: Statutory reporting
B. Stage 2: Solvency II Solo reporting
C. Stage 3: Solvency II Group reporting and mgt. reporting
… Many of the data in the Solvency II solo QRT’s ela borate on statutory data, that is why the Solo QRT ´s are planned in stage 2. Parts of the Solvency II implementation in Tagetik
can be executed parallel to the statutory implement ation
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Stage 2: Solvency II Solo reporting
A. Key issuesA. The design of the Solvency II application is easy because the datamodel,
reports and entry forms are pre-built by Tagetik in the Solvency 2 starter kit
B. The biggest challenge is how to collect the Solvency II data from the different sources to the Tagetik Starter kit
C. To assure data consistency it is crucial to have insight into relationships between the statutory and solvency II data. See example below for the balance sheet.
Generalledger
StatutoryBalance sheet
Solvency IIBalance sheet
BS-C1
Datamodel
Most insurance companies documented definition and
source analyses for the QRT’s. The info can be useful for the design of
Tagetik
One mapping from G/L to Tagetik
Tagetik
By applying one datamodel and one
mapping from the G/L to Tagetik, data consistency
between statutory and Solvency II data is
assured
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Project approach TVM - roadmap (2)
A. Stage 1: Statutory reporting
B. Stage 2: Solvency II Solo reporting
C. Stage 3: Solvency II Group reporting and mgt. reporting
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Stage 3: Solvency II Group reporting
A. Focus will be on QRT’s that need to be reported on group level (Cooperatie TVM)
B. This includes i.e. consolidated Group Solvency II figures (balance sheet and other QRT’s)
C. Special attention to calculation of group SCR and MCR
D. Stage 3 is currently planned at TVM
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
The result
SourcesPolisadministraties
Projectiesystemen
Grootboek
Kasbank/ beleggingen
Etc..
Financial statements
Solvency 2
MgtReports
How reporting at TVM used to be organized
How reporting at TVM is currently organized
Many linked excel sheets
Many manual corrections needed
No standard reporting (several mappings)
Poor audit trail, tracibility and documentation
Long closing period
No processes in place for Solvency II pillar 3
One uniform integrated reporting environment for statutory, solvency II and in future also internal mgt reporting
Fully traceable and auditable figures
Documented processes
Solvency II reporting in place for solo entities
Lean-and-mean and faster closing cycle
No reporting processes for Solvency 2
SourcesPolisadministraties
Projectiesystemen
Grootboek
Kasbank/ beleggingen
Etc..
Financial statements
Solvency I
Mgt. reporting
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
The result
With this, TVM is proud to be the first European insurance company to have fully integrated and standardized
statutory and solvency II reporting processes producing auditable and traceable data
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Lessons learned / tips & tricks – Solvency II (1)
A. Create a single database and data model in Tagetik and a single mapping from general ledger to Tagetik for both Solvency II and Statutory purposes. This assures data consistency, prevents unnecessary checks and balances and is at lower cost
B. Use the information from the QRT definition and source documentation to create the mapping for all financial QRT’s
C. In case Tagetik will be utilized for both statutory and solvency II purposes, elaborate on the pre-defined starter kit application (use the starter kit application as a basis). This prevents a synchronizing effort between statutory and solvency II at a later stage
D. Use data from the national Solvency II dry run (Holland parallel run) for testing purposes. The starter kit parameters can fairly easy be adjusted to national requirements (the starter kit is currently based on parameters of QIS 5)
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Lessons learned / tips & tricks – Solvency II (2)
E. The starter kit currently services parts of the SCR and MCR calculation. Keep in mind that with the current version of the starter kit, insurance companies will have to continue to perform sub-calculations for the SCR and MCR
F. The primary goal of the starter kit is of course to meet reporting requirements of Solvency II. The pre-defined Solvency II starter kit is aligned with the QRT’s. Yet, it is possible and may also be interesting, to add more detail to the starter kit for analyses purposes (for instance to analyze data on product level or customer level)
G. The pre-defined validations in the Solvency II starter kit are based on the validations documented in the log files, enclosed by EIOPA to the QRT’s. The validations published by EIOPA are incomplete (for instance there are no validations between the technical provision QRT’s (TP) and the Balance sheet (BS). Create company specific validations to ensure data consistency
H. Installing the starter kit is a relative small project. By far, most of the effort will be to disclose the source systems
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Lessons learned / tips & tricks – General
A. Define a small and clear scope. This will simplify the implementation and benefits are gained sooner
B. Start the project with a profound and detailed design. Document the design and requirements well.
C. The most important design issues are: scope of reports, level of chart of accounts, design of custom dimensions, detail-level of historical data and last but certainly not least: ETL
D. Create a skilled team. An experienced project manager with both knowledge of finance/ IT, Solvency II and the skills to manage complex projects is crucial for a successful implementation as well as team members with profound knowledge of Tagetik and ETL
E. Garbage in, garbage out. Keep in mind that Tagekit is a reporting system, and in most of the times the final chain in the information supply chain. In some cases it may be better to solve issues in the source before implementing a reporting system
F. Let controllers/ other “internal” colleagues participate in the implementation project as much as possible. This improves the quality of the project, reduces cost and through learning by doing, knowledge is effectively transferred
Tagetik
Tagetik 3.0
Benefits & TCO
Case Studies
Vision & Mission
The Market
Thanks for your attention !
For more information, please contact:
Tagetik NetherlandsMarco van der Kooij
www.tagetik.nl / www.inovasion.nl
Hulsker Finance & Business ConsultancyAuke Jan Hulsker www.hulsker.nl
This presentation is prepared by Auke Jan Hulsker, project manager in reporting solutions for financials institutions and specialist in Solvency II. Auke Jan is
currently as a project manager responsible for the implementation of Tagetik IFRS and Solvency II at TVM and Generali Netherlands
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