The quality of Solvency II reporting data is improving over the years, the European Insurance and Occupational Pensions Authority (EIOPA) said in a report published on Tuesday 6 September.
EIOPA received over 130,000 individual and granular submissions between 2016 and 2020 for Solvency II reporting. The quality benchmark for annual solo reporting has increased from 82% in 2016 to 94% in 2020.
The report shows that automated data quality processing solutions and advanced analytic tools, as well as built-in validations in the XBRL taxonomy (eXtensible Business Reporting Language, a computer language used to describe financial data) have been effective in increasing data quality.
The number of such highly effective integrated validations is growing and also provides examples of how taxonomy validations significantly improve data quality, even when they fail.
Similarly, the use of the Legal Entity Identifier (LEI), which ensures the correct and unique identification of insurance entities and their counterparties, increases the quality and relevance of the information reported. The use of the LEI has continued to increase significantly since 2016, but there is still room for improvement. The latest changes to the technical standard for implementing Solvency II reporting should contribute to this improvement in the future (see chapter 6).
The report also describes the intensive and extensive use of Solvency II data by EIOPA for internal analysis, supporting national supervisors, publications and many other uses.
To view the EIOPA report: https://aeur.eu/f/2zd (Original version in French by Anne Damiani)