The well-known Slovenian insurance company adapted its Solvency II solution to cover the preparation of input data for calculations and create a reporting system separately.
Our task was to ensure all necessary calculations from input data to output preparation were considered for mandatory reporting.
We based our delivery on the Standard Formula Calculator, a general application adapted to the specific needs of this insurance company, which worked alongside their marketing module to calculate risk on the assets side of the balance sheet.
Along with the calculator, we provided the know-how needed to calculate the standard formula and create a detailed description of the data interface. Thus, we enabled the client to make adjustments to the data warehouse as a data source when calculating Solvency II and to interpret the output values used for reporting correctly.
The result of the implementation is an automated calculation of the standard formula “in one click”, a calculation which is then integrated into the overall Solvency II solution employing the full range of benefits of the Standard Formula Calculator application.
Fully transparent calculations are based on consistent input data, without duplication, and producing all required values for mandatory reporting. The calculation incorporates not only the SCR and all its components, but also the economic balance sheet and the MCR.