When implementing the Solvency II Standard Formula, insurers are finding that calculating their Solvency and Minimum Capital Requirements (SCR and MCR), and Risk Margin is not simple. Business Benefits With eFrame® for Insurance Solvency II Standard Formula, insurers can smooth the flow and ensure the governance of data for solo and group reporting. With its taxonomy driven data model, every data point necessary to complete the quantitative reporting templates (QRTs) is identified and can be mapped within the organization, bringing confidence that the regulatory submissions and business intelligence derived from them will be dependable. For more information please visit: http://www.secondfloor.com/solution/eframe-for-insurance-solvency-ii-standard-formula

1. eFrame®
for Insurance Solvency II
Standard Formula
Automated, repeatable reporting for Solvency II
Standard Formula
www.secondfloor.com

2. eFrame®
for Insurance Solvency II
Standard Formula
Automated, repeatable reporting for Solvency II
Standard Formula

3. Benefits of choosing the Standard formula
standard formula implementation challenges
Many insurers have chosen to use However, when it comes to
the Standard Formula for Solvency II reporting, implementation, many organisations find that
believing – rightly – that it is simpler and quicker the standard formula is not as simple as it might
than building an Internal Model and seeking seem. Setting up the reporting process reveals
regulatory approval for it. a number of technical and business challenges,
such as:
The standard formula sets out the required data
and economic capital calculations for common • Data collection – the data needed to
risk types, and disclosure is via a standard report perform the calculations and populate
format. For less complex businesses, it’s a less the final report is fragmented across the
onerous approach – and any resulting increase business, making it difficult to collect,
in capital requirement can often be offset against validate and reconcile
the relatively low cost of implementing the • Missing data – many insurers find that
standard formula. Insurers adopting the internal certain data required by the regulator is
model approach might also implement the missing altogether, or at least not available
standard formula for comparison purposes. in a machine-readable format
. • Inconsistency – in larger firms particularly,
data is categorised in different ways and
given different labels in different parts of
the business, with no standard definitions
for key terms
• IT costs – the cost of implementing some
technology solutions, such as a firm-wide
data warehouse or GRC application suite,
can be significant
• Manual effort – a huge amount of time
and effort can be spent in locating, collecting,
validating and reconciling the relevant
data, taking valuable resources away from
the business
• Process bottlenecks – when data for
Solvency II is being collected, calculated
or reconciled manually, there is s a risk of
bottlenecks occurring if one part of the
process is held up
• Repeatability – the production of a
standard formula report tends to be a manual
effort, with no automated process for ensuring
it’s done the same way every time
• Time constraints – producing a standard
formula report manually can take weeks of
effort, making it hard to meet Solvency II
reporting deadlines (typically 3-4 weeks after
quarter end)
• Lack of trust – when there’s no standardised
process underpinning the creation of the
report, senior management are less likely to
trust it as an internal tool for risk management

4. An automated, repeatable • Taxonomy-driven data modelling –
creates a data model with standard, firm-wide
and auditable solution for definitions and classifications for every data
standard formula reporting point required for the quantitative reporting
templates (QRTs)
eFrame® for Insurance Solvency II Standard
Formula is a solution that orchestrates the • Workflow – sets up responsibilities and
collection of data and calculations for Solvency II a process flow for supplying and validating
reporting, introduces governance and workflow data for standard formula reports. Email alerts
to ensure accurate reports are produced on time, and escalations ensure data is supplied and
and provides a full audit trail for all aspects of validated in a timely way
the report production.
• Solvency II templates – uses pre-built
Using the solution, insurers can accelerate templates to accelerate standard formula setup
Solvency II implementations and embed and report submission, including a ready-made
standard formula reporting as an efficient, environment for Risk QRT reporting and
controlled process at solo and group levels. the QIS model
• Integration with existing systems –
Features imports data automatically from finance,
The solution is highly configurable and modelling, risk and compliance applications,
tailored to reflect the specific processes, including spreadsheets
organisational structure and lines of business of
• Time Window-Driven Reporting™ –
an organisation. It can handle multiple reporting
one click in eFrame® triggers the process
environments and has built-in workflow and
to generate a complete standard formula
governance to orchestrate the reporting of Life,
report within a specified timeframe (typically
P&C, Market, Credit and Operational risks for
3-4 weeks after quarter end)
Solvency II and internal risk management.
• Full audit trail – preserves a record of
• Enterprise visualisation – discovers
every action taken to create a report, every
and maps the processes, organisational
calculation made in the production of the
hierarchies, systems and data sources inherent
figures, and every source system supplying
in an organisation today, to provide a start
the underlying data
point for Solvency II programme planning
Capital calculation
Consolidation, Solvency II Balance Sheet
SCR / MCR
Calculators
ESG Actuals vs Appetite
Scenarios/ Risk factors Capital
Solvency II parameters
eFrame® Liquidity
Narratives For Insurance Reporting
Solvency II
Data Standard Formula ORSA
Premiums, Claims, Expenses QRT
Assets
TIME WINDOW
DRIVEN
REPORTING
PROCESS
CONTROL &
AUDITABILITY
RSR / SFCR
Operational losses
Financial data
eFrame® works with
Data Calculators
a firm’s existing
Cash Flows & RP
MCEV
systems to create a
DFA repeatable, auditable
process for standard
formula reporting

5. Benefits
eFrame® for Insurance Solvency II Standard Key features
Formula is an elegant solution to Solvency II
reporting challenges. • Automation and workflow
Creating an automated process for standard • Data governance and validation
formula reporting delivers significant business • Audit trail
benefits for large and small insurers alike:
• Manage complex reporting demands – by
establishing a dependable reporting process
that works across multiple reporting cycles,
reporting approaches, business hierarchies,
geographies and supervisory jurisdictions Key benefits
• Meet challenging reporting deadlines • Reporting deadlines met, everytime
– SecondFloor’s Time Window-Driven
• Efficient compliance
Reporting™ methodology ensures standard
formula reports are completed, validated and • Trusted reports
submitted within the regulator’s deadlines
• Reduce the cost and effort of compliance
– by automating much of the data collection
process and automatically prompting Implementation process
individuals to fill any gaps, with guidance
All eFrame® implementations can be carried
on what data to provide
out by experienced SecondFloor consultants
• Ensure good governance – by creating on a fixed-price, fixed-date and fixed-content
a standard, documented reporting process basis. Contact us on info@secondfloor.com
for Solvency II Standard Formula, with a full to request a demonstration or to discuss your
audit trail and traceability for every data point particular requirements.
supplied and every action carried out in
the production of the report Find out more
• Improve internal risk management – by To learn more about how eFrame® can help
creating trustworthy, auditable, repeatable you to standardise, automate and accelerate
reports and risk intelligence that can be used your reporting processes,
to guide internal decision-making about risk contact us on +31 (0)20 6589 700,
appetite and risk mitigation
email us at info@secondfloor.com,
Chosen by leading insurers or visit our website at www.secondfloor.com
eFrame® is being used for Solvency II
preparation and reporting by some of
Europe’s leading multi-country insurers.

6. For more details please contact
SecondFloor.
About SecondFloor
SecondFloor helps firms to comply
and produce regulatory information
efficiently, consistently. Companies
that turn to SecondFloor’ solutions
benefit from timely, complete, accurate,
traceable, auditable and repeatable
reports and analytics. Facilitating stress
testing, economic capital calculations,
and regulatory reporting in complex
environments are key elements of
SecondFloor’s credentials that have
established it as a successful enabler
of business analytics. eFrame®,
SecondFloor’s software application,
reflects best practice approaches and
project accelerators learned with clients
during years of experience. SecondFloor
is also an IBM risk analytics reseller.
Request a full demonstration
Would you like to have a personalized
demonstration of the eFrame® for
Insurance Solvency II Standard Formula?
Please contact us at
info@secondfloor.com or simply visit
www.secondfloor.com