Solvency II public reporting – Getting over the line | KPMG | UK

Solvency II public reporting – Getting over the line

Solvency II public reporting – Getting over the line

Given the wide variety in depth and clarity of SFCRs published this year, we consider those areas where insurers have taken varying approaches to the disclosures.

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The first set of Solvency and Financial Condition Reports (SFCRs) published towards the middle of the year has revealed a wide variety in depth and quality of disclosures provided by insurers. Our publication ‘Solvency II Public Reporting – Getting over the line’ aims to help insurers benchmark their SFCR disclosures against peers in the market as they look to reflect on their approach to SFCR disclosures and to develop common market practice.

The SFCR provides a large amount of qualitative and quantitative information which was not previously available in the public domain and various stakeholders are still trying to assess its relevance and usefulness. Although public reaction to the first set of SFCRs published this year has been lukewarm at best, the SFCR still represents a comprehensive overview of an insurer’s solvency position and how this is derived.

In the United Kingdom, the Prudential Regulatory Authority introduced an audit requirement to cover the Valuation for Solvency Purposes and Capital Management sections of the SFCR as well as a subset of the public Quantitative Reporting Templates. In this publication we have focused on those two audited sections of the SFCR and have benchmarked disclosures across a sample of insurers covering both life and non-life sectors.

Our benchmarking study looks into the quality of disclosures relating to:

  • Bases, methods, assumptions and use of approximations for market-consistent fair value
  • Valuation hierarchy and alternative valuation methods
  • Capital management policies and composition of Own Funds
  • Consolidation methods and availability of group Own Funds

Download our benchmarking study on Solvency II public reporting. 

 

The following people have made significant contributions to this publication:

Naweed Doomunkhan, Senior Manager

Milena Lacheta, Manager

Sonia Ahuja, Assistant Manager

Himanshi Kanal, Assistant Manager

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