Data quality within the Solvency 2 context
The Solvency 2 directive mentions data quality several times in Articles 48, 82, 86, 104, 121 and 124. Delegated Act has devoted a full section to this topic in the rules dealing with technical provisions.
In this context, each undertaking will have to show relevant data quality in Solvency 2 calculations – internal model, USP, Best Estimate provisions…
Data quality is a major issue in risk assessment and reliability of Solvency 2 results. Inadequate data quality could justify the constitution of an add-on capital or the rejection of the internal model.
The transcripts we make concerning the regulatory requirements as regards data quality are as follows :
These requirements can be translated into the following process of data quality assessment:
The regulator has firmly insisted on the priority of the data quality subject for which Actuelia provides a clear and pragmatic approach that enables to meet the requirements of Solvency 2. Our team already assists several companies in the implementation of Solvency 2, particularly on topics linked to the SCR calculation, the ORSA as well as written policies but also data quality.