Tagetik Solvency II introduction
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Tagetik Solvency II introduction In this presentation you will find the answers to the common challanges with the
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Tagetik Solvency II introduction
- 1. SOLVENCY II COMPLIANCE Made simple with TAGETIK
- 2. Background Solvency II Reporting Challenges Tagetik Solvency II Solution The Tagetik Difference Tagetik in Action Agenda
- 3. • EU Directive to codify and standardize insurance regulations • Define amount of capital EU insurance companies must hold to reduce risk of insolvency • A single regulation to enhance consumer protection • Similar to Basel III for Banks • Will come into effect on January 1, 2016 • Impacts all insurance companies with EU operations Solvency II Background Solvency II Turning significant change into competitive gain
- 4. Solvency II: The 3 Pillars • Non life underwriting • Life underwriting • Special health underwriting • Interest rate • Market • Operational • Concentration QUANTITATIVE REQUIREMENTS Balance sheet evaluation Solvency Capital Requirement (SCR) Minimum Capital Requirements (MCR) QUALITATIVE REQUIREMENTS & SUPERVISION System of Governance Own risk & solvency assessment (ORSA) Supervisory Review process (SRP) DISCLOSURE REQUIREMENTS Public disclosure of FCSR (Financial Condition and Solvency Reports) RSR (Common Supervisory Reporting) Pillar I Pillar II Pillar III Risk
- 5. Solvency II: Law Requirements and Deadlines 2009 2010 2011 2012 2013-14 2015-16 Framework Directive (L1) Definition of principles for the solvency system Implementing Measuring (L2) Regulation adoption (Dir. SII) Supervisory standards (L3) Guidelines to guarantee a convergent application and implementation of regulations Regulation transposition by national authorities 2016 Solvency II enforcement Directive Development Directive Adoption Council & Parliament Implementation Member States QIS5 1° Tagetik POC Tagetik Pre-packaged solution Tagetik Maintenance Service
- 6. Solvency II: Reporting and Compliance Challenges • Data Integration and Quality • Complexity of Calculations • Changing Regulatory Requirements • Creating and Maintaining Governance Processes • Differing Financial vs. Management Reporting and Disclosure Requirements • Reconciling Different Reporting Formats • Ensuring Adequate Audit Trails and Controls Solvency II
- 7. Solvency II: Reporting Challenges Source: KPMG Solvency I Regulatory Requirements Solvency II Regulatory Requirements Solvency III Management Model Surplus Capital Technical Provisions Surplus Capital Capital Add-on SCR MCR Margin Best Estimate of Liabilities Surplus Capital IECR Margin Best Estimate of Liabilities 3 2 1 3 2 1a 1b Standard SCR Adjusted SCRMGF RMM 1. Technical provisions to match insurers’ liabilities a) Best estimate of liabilities b) Market Value Margin 2. Regulatory capital requirements 3. Capital held in excess of regulatory capital requirements
- 8. Solvency II: State of Readiness in Europe Figure 1: European Solvency II readiness 60% 50% 40% 30% 20% 10% 0% Already compliant In the course of 2014 In the course of 2015 In the course of 2016 In the course of 2017 Later 2% 56% 20% 32% 58% 11% 19% 1% 1% 2013 2012 Figure 2: Overall implementation status by pillar 2012 2013 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Pillar 1 Pillar 2 Pillar 3 1. The requirements are not met 2. Some of the requirements are met 3. Most of the requirements are met 4. All of the requirements are met 5. The company already goes beyond the Solvency II requirements Overall, the insurance industry is on track to implement Solvency II by 1 January 2016; however, a significant amount of work is needed between now and then to address preparedness across all three pillars. Source: E&Y European Solvency II Survey 2014
- 9. “With Tagetik’s solution in place, TVM is proud to be the first European insurance company with an integrated and standardized statutory and Solvency II-compliant reporting processes.” Emile Kaal, Finance directorTVM Leading the Way to Solvency II Compliance
- 10. The Tagetik Solution: Pre-packaged Solution for Solvency II Pre-built complete set of accounts, data entry forms, reports, diagnostic checks, calculation rules, narrative templates and XBRL output to satisfy the EIOPA requirements for Solvency II Tagetik offers a service package to maintain alignment with changes to EIOPA regulations Tagetik distributors and partners offer a service to maintain national specific requirements Compliance now, compliance in the future
- 11. What does the pre-packaged solution cover? Solvency II Pre-Packaged Solution Scope Pillar I Pre-packaged calculations to cover standard formulas Pillar II Expected Solvency position & ORSA narrative elements Pillar III 100% coverage EIOPA Requirements with QRT, FCSR and RSR
- 12. Tagetik: The Unified Approach to Solvency II Create a foundation of reliable, traceable data Loading and mapping from internal/external data sources Data collection and consolidation Workflow SCR and MCR Calculation Integration with financial data Data validation As the basis for all reporting and disclosure requirements Financial Reporting Management Reporting Dashboards Disclosure Management XBRL output Integration with SharePoint
- 13. datamodel TVM fase 1 Mgt. Reporting QRT’s, XBRL, Narratives General ledger Tagetik Solvency II pre-packaged solution Tagetik Financial Statements Data model & calculations Solvency II pre-packaged solution Local SII require-ments QRT source data Pillar 1 source data Inputs Outputs ETL Customer Data Model Tagetik Solvency II Architecture
- 14. • All QRTs • Annual • Quarterly, • Group, • Solo • Data-checks and log-files • Templates for RSR/ SFCR • Updates from EIOPA • XBRL output • Documentation Pre-packaged Tagetik application with all building blocks Tagetik Solvency II Solution Components
- 16. Tagetik “Full Service” Solvency II Reporting • Built-in intelligence • Pre-built calcs and reports • Workflow and validation • Project consulting • Technical consulting • Check-up consulting • Training and support • Regulatory updates
- 17. Achieve fast Solvency II compliance with our Pre-packaged application and flexible customizations Streamline your data generation, consolidation, reporting and disclosure processes to save time, effort and costs each step of the way Stay aligned with changing regulations with regular Pre- packaged application maintenance Benefit from Tagetik’s rich project experience in the European financial services sector Unify financial, management and regulatory reporting as well as other CPM processes in a single product Tagetik: One Solution for Solvency II Solution Benefits Tagetik provides an excellent audit trail. TVM can now easily trace and show the adjustments that derive statutory consolidation and Solvency II reporting from one source. Auke Jan Hulsker Sofia Consulting
- 18. Tagetik: One Solution for Solvency II and Beyond XBRL IFRS 4 Regional Disclosures Financial Statements Board Books Future Regulations
- 19. A Single Platform for Multiple Reporting and Performance Management Needs IFRS Group Financial Statement Consolidation MVBS – Market Value Balance Sheet Consolidation Own Funds (OF) Quantitative Reporting Templates (QRTs) Regular Supervisory Reporting (RSR) Solvency & Financial Condition Report (SFCR) Process Details Actual / Monthly Reporting Forecast Planning IFRS Consolidation MVBS Solvency II Reporting Planning & Forecasting
- 20. Many Insurers Trust Tagetik for Solvency II
- 21. The Company: TVM Founded in 1962, 400 full-time employees Netherlands-based; offices in Belgium, France, Germany Transportation Insurance Project Scope Results/Benefits • Local close • Align processes to simultaneously address statutory, Solvency II and management reporting • Automate consolidation and reporting environment for 30 separate company entities • Create a single solution for data collection and storage, entry forms, consolidation, reporting • Provide built-in financial controls and validations, with full traceability and transparent audit trails • Automated Solvency II Pillar 3 calculations and reports • Meet Solvency II requirements in parallel with statutory reporting, interco elim, and fast close • First European insurance company to standardize statutory and Solvency II-compliant reporting • Simple and cost effective solution for meeting the reporting requirements of Solvency II • Automated process consumes fewer resources
- 22. The Company: Gruppo Credem Listed on Italian stock exchange since October 1997 Headquarters in Reggio Emilia, Italy Commercial Banking, Insurance, Asset Management • Cover Solvency II P2-P3 and local requirements • Single-product to manage supervisory reporting, planning & budgeting and more • Enterprise Data Warehouse to support new infrastructure, integrate with P1 calculation engines • Reduce operating risk • Enhance information quality, efficiency, availability • Enable users independence • Single platform for multiple requirements: reporting, budgeting, planning etc. • Full compliance with Solvency II P2 and P3 • Complete auditability for Solvency II processes and data changes throughout the process • Collaborative reporting on P2, integrated with DWH • Greater analysis capability for CFO and quicker answers for CEO • Better business management capabilities for Board Project Scope Results/Benefits
- 23. The Company: Talanx AG Headquarters in Germany, operating in 150 countries 22,200 Employees Worldwide Global B2B Insurance Focus • Meet Solvency II P3 reporting requirements in Q1 2014 • Implement a single solution for solo/group reporting • Functional guidance and support for local Pillar 3 • Coordination and synchronization of parallel projects Support of the standard formulas for Pillar 1 • Pillar 3 reporting must consider the public and capital market perception – i.e. the Solvency Financial Condition Report (SFCR) • Tagetik selected since it was already successfully used for IFRS reporting • Solvency II solution supports all Pillar 3 reporting requirements • Single software tool for solo/entity and group reporting and provides support for standard formulas Project Scope Results/Benefits
- 25. • Solvency II deadline is approaching quickly • Tagetik is a leader in Solvency II solutions • Achieve compliance fast and compliance that will last • Leverage the success of other leading insurance companies • Stay ahead of changing regulations and much more • For more information: http://www.tagetik.com/solutions/process/external-rep Why Tagetik for Solvency II? Why Now?
- 26. www.tagetik.com Thanks Stellan Rosman Customer Solution Manager Tagetik Nordic
Hinweis der Redaktion
- Please personalize your opening based on your knowledge of the client‘s business pains and the desired solution. This is just an example. Good [morning]! My name is [NAME] and I am the [TITLE] at [TAGETIK]. [CONTACT’S NAME] invited me here today to explain how [COMPANY] can [quickly achieve Solvency II compliance as part of a unified CPM solution] with Tagetik .0. I first [met with CONTACT’S NAME at our EVENT in May. And he briefly told me about some of the current challenges in your FINANCE DEPARTMENT: That you need to make your processes and systems compliant with the upcoming Solvency II regulations That your current spreadsheet-based system is getting too complicated and is missing key features like an audit trail That filing these types of disclosures is just taking too long And that you want to fix these and other issues with a new solution.
- So in the next [half hour] I am going to show how: Tagetik can quickly fulfill your Solvency II requirements as part of a complete, fast-to-implement solution. You’ll see how its powerful built-in capabilities support the disclosure management process from start to finish: Starting with ETL and data collection to consolidation and validation And fulfilling various reporting and disclosure reporting requirements - even down to XBRL output and Sharepoint integration from one set of data You‘ll also see that Tagetik doesn‘t just streamline your Solvency II reporting but all your disclosure management processes and it unifies all CPM processes in a single product. That means you can easily add functionality for Statutory reporting with a fast close Management reporting Planning/budgeting and forecasting Risk management Or other key processes – when and if you need them – at a later time, inthe same product Successful deployments, however, require more than just great software – and that’s what makes the Tagetik difference. Together with our partners, we also provide a wide range of professional services to ensure a fast, seamless integration into your business processes. Our customer references – especially within the financial services area – speak for themselves. After that, we will show you a live demonstration of the software and highlight some key features Before we begin: if you have any questions during the presentation, please do not hesitate to ask.
- (this slide will be more applicable to US customers who may not be familiar with Solvency II) For those that may not be familiar, Solvency II is a European Union directive that codifies and harmonizes EU insurance regulations It’s focused on ensuring that insurance companies have adequate capital to reduce the risk of insolvency in a crisis situation It also aims to unify the EU insurance market and enhance consumer protection These regulations have been in development since 2009 and are scheduled to come into effect on January 1, 2016. Solvency II impacts any insurance companies with EU operations, including those with a US parent, and US subsidiaries of EU companies
- Before we begin, let’ s just take a brief look at how Solvency II has defined a whole new set of regulatory requirements for insurers throughout the European Union. As I am sure you are aware, this EU directive has three main parts or pillars: Pillar 1 addresses quantitative requirements such as the amount of capital insurers must hold Pillar 2 covers governance, risk management and supervisory requirements And Pillar 3 deals with reporting, disclosure and transparency requirements Pillars 1 and 2 are already in effect. Pillar III requirements – which include the first FCSR and RSR filings – were scheduled to go into effect in Q1 2014, but the effective date has now been pushed back to January 1, 2016. Fulfilling Pillar 3 requirements, we have found, is a whole other ballgame compared to Pillar I and II We are not just talking about new FCSR or RSR report templates and XBRL output - that is just the last mile of the process. The real challenge starts much earlier – namely ensuring that the data that you are plugging into these filings is reliable, accurate and 100% traceable. That is not an easy task and that’s why Tagetik’s solution for Solvency II unifies the entire disclosure management process – starting from data entry and collection to consolidation and reconciliation and on to reporting and disclosure filings – in a single solution with traceability throughout the process.
- Tagetik first started to working on Solvency II in 2011. It was based on QIS5 – so we are well ahead of the curve on building a solution to meet market requirements. In 2012 Tagetik delivered the first complete version of the pre-packaged solution. Our customer TVM was the first company in Europe to go live on a packaged solution for Solvency II reporting and compliance. We continually maintain the pre-packaged solution to keep it updated with changes in regulation. Part of our value proposition is that we will periodically update and maintain the solution for future changes to the regulation so you don’t have to. Freeing you from constantly monitoring the regulation and updating your solution based on changes.
- Here’s a summary of the key challenges associated with Solvency II Reporting and Compliance: A major challenge is collecting all of the required data from multiple sources, and ensuring the quality of that data through the calculation and reporting process. The MCR and SCR calculations within Solvency II are very complex and require a high level of rigor and standardization across local operations and Group reporting. New governance processes must be put in place to control Solvency II reporting. And the reporting itself is very complex with many Quantitative Reporting Templates (QRTs) that must be adopted and reported on a quarterly and annual basis. Some of these reports will be submitted to local authorities, some to national authorities and some are for public consumption for up to 5 years. And all of the calculations and reports need to stand up to rigorous audit requirements, so having single source of data to support multiple reporting requirements is more efficient for the customer as well as for the auditors.
- Here’s an overview from KPMG of the key elements of Solvency II reporting and how this has evolved from Solvency I. The first two columns compare the basic framework designs of the Solvency I and Solvency II regimes in terms of the regulatory requirements. The third column depicts the economic capital model that a firm might use to run the business, which is known as the Internal Economic Capital Requirement (IECR). While surplus capital under Solvency I and Solvency II appears to be similar, the actual situation will vary from company to company, with some seeing more surplus capital under the new regime and some less. Here are some key definitions to be familiar with: Minimum Capital Requirement (MCR) – the minimum level of regulatory capital Solvency Capital Requirement (SCR) – the risk-based level of regulatory capital Adjusted SCR – SCR level which includes any supplementary capital requirement determined through the Pillar 2 Supervisory review IECR – management’s internal estimate of capital need
- Here’s a view of the state of Solvency II readiness in Europe from a 2014E&Y survey. E&Y found that the insurance industry is overall ready to implement Solvency II by January 1, 2016, but that much work is needed to address the needs across all three pillars. 2015 is the year that most companies will be focusing on getting their software platforms and internal processes ready for full Solvency II compliance.
- So… can Tagetik help you quickly fulfill your Solvency II requirements? We believe the answer is yes, just as we have for TVM who was the first European insurance company with a statutory and Solvency II compliant reporting process – and 40 other customers, making us one of the leading Solvency II software providers in the world. One of the key points here is statutory and Solvency II. You can do one or the other in Tagetik extremely well but when you do both from the same solution and the same data with full auditability between the two. That’s a real value driver in terms of efficiency, cost and reduced risk. So, lets see how we do it…
- Our Pre-packaged application contains everything you need to fulfill your Solvency II requirements so that you can: Calculate Solvency Capital Requirement (SCR) , Minimum Capital Requirement (MCR) and other KPIs Complete all quantitative (QRT) reporting and check the data accuracy thanks to the diagnostic checks Complete all qualitative obligations: FCSR, RSR and ORSA with the help of built-in narrative templates Generate traceable, auditable numbers and run stress tests on all company levels To help you achieve fast results, the Pre-packaged application contains pre-built templates for Data-entry forms Reports Narratives and XBRL output for automated, computerized filings. In cooperation with our distributors and partners, we also offer maintenance services to keep your system aligned with changing EU or national regulations. You can customize or extend the Pre-packaged application with individual charts of accounts, reports or other customized settings directly in the software and without additional programming. if you have customized other standard software programs in the past, you might have had issues when you installed an update. That’s not an issue with Tagetik. Any customizations that you make in the software or our Pre-packaged application templates will remain intact when updating to new releases.
- The Tagetik solution provides support for all 3 Pillars of Solvency II requirements. For larger companies with complex calculation engines such us Moses, Prophet, etc, Tagetik can upload data from those calculation engines, enhance the additional data via our ETL and recalculate SCR, MCR if needed. Tagetik includes a powerful ETL engine to feed the supports the creation of all QRTs at business entity and built in consolidation logic to produce reporting at the group level. The solution is pre-packaged and ready to be used, including diagnostic rules to guarantee data quality. To support XBRL output, Tagetik supports integrated XBRL output via our Collaborative Disclosure Management component with embedded Fujitsu Xwand XBRL engine. The Collaborative Disclosure Management tool supports the management and disclosure of documents such as RSR, FCSR and Orsa documents. For Pillar I: Tagetik provides a pre-built application with SCR calculations of the standard model, including EIOPA helper tabs & simplification formula’s for all (sub) SCR’s and all diversifications (correlations at each level within SCR tree). It includes “future proof” calculations that are aligned with EIOPA requirements – including parameters and parameters handling and models that have been validated by an external actuary. And the Pillar 1 data model and calculations align and fully integrate with Pillar 3 disclosure requirements - input derived from QRT’s and output (SCR’s) automatically transferred to QRT’s. For PILLAR II: Tagetik can cover the requirement of traceability and data quality of Pillar II and the Pillar II narrative elements ( with a preconfigured template) using our disclosure management functionality in order to support the production of the ORSA document. Tagetik can also support the data collection of the projected data and the calculation of the expected solvency positions. For Pillar III we can fully meet the compliance requirements of the regulation: Tagetik includes a powerful ETL engine to collect the data and supports the creation of all QRTs at business entity and built in consolidation logic to produce reporting at group level. The solution is pre-packaged and ready to use, including diagnostic rules to for data quality and XBRL via CDM. We have built the solution to meet the requirements for Solvency II but like any other solution there is always the customer specific configuration that needs to be done to meet the individual needs of each customer. We provide a prepackaged solution that allows you to do that without additional coding. And it can address your other disclosure and reporting requirements all from one solution and one set of data. Less work, less IT support, less risk, more time. Isn’t that what you want from any software? That’s what Tagetik for Solvency II does.
- At Tagetik we always think of the big picture. Solvency II is a important issue for your organization and you need to address it. But Solvency II compliance is not an island. It is deeply engrained in your other financial processes and certainly your financial reporting and disclosure. If you think about it separately you are just adding additional work, an additional process, and additional data and reports to reconcile – all of which adds additional risk. But if you incorporate it into your financial process it is simply another output of that process. Just as your financial statements or management reports are. That is how we look at Solvency II, as part of the unified close to disclosure process. If you view the financial reporting and disclosure process as a marathon, Solvency II is really just one stretch in the final mile. That‘s why Tagetik doesn’t just provide standard calculations or prebuilt FCSR or RSR report templates with XBRL output. It creates a foundation of reliable, traceable data that you can use for Solvency II, other disclosure requirements, and even statutory reporting all from a single set of data with full auditability between all the different types of outputs. It supports your entire disclosure management process with powerful, built-in capabilities from start to finish. These include: ETL tools to integrate data from internal and external sources Customizable workflows for collecting data Sophisticated logic for consolidation Automated workflow features Pre-built SCR and MCR calculations Integration with financial data Data validation tools And the result of all of this? You‘ve already eliminated 90% of the stress and headaches that typically arise late in the process. No rushing at the end to meet the requirements because it is happening as you go You simply apply different formats and calculations to the same data for different audiences such as : Solvency II filings or other disclosures Financial statements Statutory reporting or Management reporting and board books Other disclosure requirements And to help you automate the publishing of this information, Tagetik also supports: XBRL output as well as Integration with Sharepoint and SAP Portal Now you might be thinking – all I need right now is compliance. We don‘t have the time or budget to replace all of our systems – even if we wanted to. And you don‘t have to, our solution works perfectly well as a stand-alone Solvency II solution. But should your needs ever change, it is good to know that with Tagetik you’ve already installed the foundation of a full CPM solution. If next year you need a close solution the following planning, just add the process; the database, reporting, calculation engine and ETL are already in place. No new products or technologies to install or integration to build. And since it is one software – all developed by one single vendor – it is very easy to use and maintain.
- Here’s a look at the architecture of Tagetik’s Solvency II solution. Inputs include financial data from the General Ledger, as well as source data required for the Solvency II Pillar 1 calculations and QRT reporting. The general ledger data is combined with the pre-built Solvency II data model and calculations. The outputs are Solvency II QRTs for local and group reporting, as well as Narrative Reporting and XBRL-formatted output. All of the pieces in the box are pre-packaged as part of the Tagetik Solvency II solution. (see next slide)
- The Tagetik Solveny II solution is a pre-packaged application with all of the required building blocks: Review the list. On Documentation – note that this includes documentation of the Solvency II market requirements, as well as the Tagetik Solvency II solution. For each QRT we have created a link to documentation that include 4 sheets: - Technical specifications about the Tagetik configuration (TGK_SPECIFICATION) - Our data model together with specifications about each single field and admitted values, especially useful to feed the system through ETL (TGK_ACCOUNT_DETAIL) - EIOPA Template (EIOPA_STR) - EIOPA log files (EIOPA_LOG) In some QRTs including calculation logics there is also an additional sheet with one example of the calculations. This accelerates the project and saves you, the customer, the time and resources and costs to develop all of this content, then maintain it going forward. Tagetik takes care of that for you today and in the future.
- In a few minutes, I will show you a live demonstration of our Solvency II module of Tagetik . And you will see that Tagetik’s unified software platform is different and provides more value than any other solution on the market A successful solution, however, means more than just great software. Our unique combination of software, services and technical and business expertise, and ongoing support and updates is what makes the Tagetik difference – and ensures that your project will be a success. And ensuring successful implementation is how we measure customer satisfaction.
- Together with our partners, we also provide a wide range of professional services to ensure a fast, seamless integration into your business processes. Our professional services include: Project consulting where our experts analyze, configure, and implement Tagetik Technical consulting for installing the software, fine-tuning the infrastructure or providing technical support Check-up consulting to optimize the performance of Tagetik upgrades, migration plan and gap analysis An extensive training program specifically designed to quickly get users up to speed so that they can take full advantage of Tagetik’s robust features and functionality. And technical and consulting support which provides the tools, support and guidance to optimize the performance of Tagetik . Tagetik and its partners have also have vast experience in the financial services industry. We have more than 100 customers in Financial Services and our clients include leading European insurers such as Talanx, TVM, and more. We have over 40 customers who have implemented our Solvency II solution and over 100 trained experts between Tagetik and our Solvency II partners. Our pre-packaged application contains everything you need to fulfill your Solvency II Pillar 3 disclosure requirements – including data-entry forms, reports, calculations, a narrative template and the XBRL output for automated, computerized filings. In cooperation with our partners, we also offer maintenance services to keep your system aligned with changing EU or national regulations. You can configure or extend the Starter Kit with individual charts of accounts, reports or other customized settings directly in the software and without programming. Tagetik’s powerful master data management keeps these customizations intact even after any Tagetik releases or updates. Pre-built and configurable, giving you’re the perfect combination of control and flexibility.
- I hope that this brief presentation gives you an idea how [COMPANY] can use Tagetik .0 to Achieve fast Solvency II compliance with our Pre-packaged application and flexible customizations The average implementation for medium sized insurance companies is 6 – 9 months (this means annual report, management reporting and QRT’s and managing data quality issues during the implementation. Streamline your data generation, consolidation, reporting and disclosure processes to save time, effort and costs each step of the way The Solvency II solution can be used to clean up the past with old systems. When we include the QRT’s to report we eliminate at least 50 -100 spreadsheets. In terms of speed, Tagetik customers can do more in the same time with less effort. As more data and reports are required, extra staff will be needed. Also, the production of the annual report is much faster (in some cases saving weeks). Accuracy of reporting can also be improved by using system automated reconciliations. Internal and External audit fees can also be reduced using the packaged Solvency II solution because of the built-in audit trail and traceability throughout the process Stay aligned with changing regulations with regular Pre-packaged application maintenance Benefit from Tagetik’s rich project experience in the European financial service sector and Unify financial, management and regulatory reporting as well as other CPM processes in a single product
- Creating synergies and taking a coordinated approach will help reduce implementation costs; improve governance; and lend confidence to insurers currently concerned about meeting Solvency II and IFRS 4 within a short period of time. From an organizational perspective, the impact of both Solvency II and IFRS 4 (Phase II) are likely to be felt on the data and systems; reporting and disclosure mechanism; governance policies and protocols; and finally the people in the organization. Tagetik has been used for many years to support reconciliation between different evaluation criteria and conflicting submission and reporting requirements like Solvency II and IFRS 4. The calculation rules for IFRS are currently different from valuations for solvency purposes. The challenge therefore, is to reconcile these different accounting requirements for investors (in other words, IFRS) and supervisors (as part of solvency II). Because its unified platform, companies have been using Tagetik for many years to support reconciliations of different evaluation criteria and to support conflicting submission and reporting requirements from one source. This reduces the cost of compliance, reduces the risk of errors or discrepancies in filings
- One of the key value propositions of the Tagetik platform is that one, unified solution can support a broad range of reporting and performance management requirements. This includes financial and statutory reporting such as IFRS and Solvency II, planning, forecasting and management. It can replace large volumes of spreadsheets and is also more efficient and cost-effective than deploying and maintaining multiple software systems to address the same requirements.
- Here are some examples of Tagetik Solvency II customers. Including new Q4 2014 deals. We are over 40 customers for Solvency II. More than half of which closed in the last half of 2014. Momentum is very strong and will increase as more and more companies realize the value of automating the process rather than simply manually preparing to meet the pending deadline.
- Nothing communicates our value better than customer stories. Here is a story about TVM. By implementing Tagetik TVM was able to meet their statutory reporting, intercompany elimination, and fast close requirements and in parallel tackle Solvency II. TVM became the first European insurance company to establish a totally integrated and standardized statutory and Solvency II-compliant reporting processes. In doing so, the company now produces fully auditable and traceable data, at a lower cost than other solutions could deliver. The Tagetik Solvency II prepackaged application, has given TVM a simple and cost effective solution for meeting the reporting requirements of Solvency II and much more.
- Here’s another example of a customer who had deployed Tagetik’s Solvency II solution. The insurance division of Grupo Credem needed a single platform to address their Solvency II requirements, as well as financial reporting, budgeting, planning and other needs. As part of this, they wanted to reduce their operational risk and enhance information quality and delivery to senior management. With the Tagetik platform, they now have a single solution for all of their financial and statutory reporting needs, and they will extend this to budgeting and planning as well. They have achieved full compliance with Solvency II P2 and P3 requirements with complete auditability. This solution has already provide greater analysis capabilities for the CFO and better information for the CEO and the board. This project was completed by a combination of Tagetik and E&Y resources working together to provide a strong combination of domain and product knowledge to drive a very successful implementation.
- Talanx AG is another customer who has selected Tagetik for their Solvency II compliance. Talanx was already using Tagetik for IFRS reporting and had a positive track record with Tagetik and our platform. So it was a logical choice to leverage this investment to address their additional needs for Solvency II reporting – at both the solo and group reporting levels. For Talanx it was an easy decision to extend Tagetik to include Solvency II.
- So before we switch to our live presentation, does anyone have any questions?
- The deadline is rapidly approaching and if you aren’t careful it will sneak up on you. More than 40 companies have selected Tagetik to address Solvency II compliance. Our application will get you ready for Solvency II quickly with its pre-built data model, calculations, controls and collaboration. You will be able to focus on value-add finance team contributions knowing that the Solvency II reporting process is under control, auditable and ready for whatever new changes and challenges come your way. Tagetik provides a short-term solution and a long-term strategy for Solvency II and other reporting in one solution. Plus consolidation, planning, and analytics from the same single application. Built for today, ready for tomorrow, Tagetik is an easy way to drive more value from the investment you have to make in Solvency II. It’s a a great way to turn the directive into an opportunity rather than simply a compliance burden.
- Thank you for your time today. If you have any questions regarding our solution or need further information, please do not hesitate to contact me. Include a photo, name and contact information of the presenter