A fresh take on risk and valuation
Back to all services

Solvency II

Designed to meet regulatory and strategic requirements of the Actuarial and Risk department.

The Solvency II regime introduced on 1 January 2016 is a harmonised, sound and robust prudential framework for insurance firms in the EU. It is based on the risk profile of each individual insurance company in order to promote comparability, transparency and competitiveness.

Finalyse offers you a comprehensive set of managed services and tailored solutions. Partner with Finalyse and let us take care of your compliance with Solvency II regulations.

How does Finalyse address your challenges?

HoAF Support:

Assist with the calculation of technical provisions including assessing appropriateness of the methods, models, assumptions and data and populating QRT's, SFCR and RSRs.

Capital Modelling support:

Production of the Solvency II Capital Requirements and supporting analysis including maintaining capital model is maintained in line with the internal governance framework systems.

ORSA support:

Capital planning and capital optimization, production of ORSA projections and stresses, communicating complex concepts and recommendations to multiple stakeholders and influencing decisions through sound analytical rationale.

SAA support:

Specifying asset classes, defining objectives and constraints, forming capital market expectations, establishing asset class bandwidths, validating the optimal allocation and optimizing the asset mix.

Strategic and operational:

Actuarial support on strategic initiatives, streamline the actuarial process and enhancements to the Actuarial Function including policies, processes and tools.

Peer reviews:

Review of assumptions, methodologies, material uncertainties and potential deteriorations, expert judgement, appropriateness of models and reasonableness of the HoAF’s conclusions.

To get all your questions answered

How does it work in practice?

Key Features

  1. Finalyse offers extensive experience and expertise on both the asset and liability sides of the balance sheet, which provides the necessary scope of knowledge and skills to help determine the solution that is optimal for your business.
  2. Leverage on our experience in areas beyond financial reporting, such as actuarial models, IT systems including data management and storage capacities, risk management including ALM and hedging, product design, business strategies and remuneration.
  3. You can choose from a comprehensive set of managed services and tailored solutions to support you with various elements of Solvency II compliance, such as implementation of the key functions, performing and reviewing technical calculations, actuarial model development, risk management (including ALM and hedging), ORSA production and reporting.
  4. You can also fully outsource the various key functions required by Solvency II to Finalyse by appointing one of our senior experts with previous experience to fulfil these functions.

What Finalyse experts say

04 Mar, 2021
EIOPA’S Opinion on the Review of Solvency II – Topic: Volatility adjustment

First in the series of blog posts that are to shed more light on the multitude of different changes in the Solvency 2 framework that are to arise from the solvency 2020 review. On the basis of EIOPAs opinion, as well as some other documents this paper sets out to primarily discuss the Volatility Adjustment and the number of concerns regarding the current provisions that either EIOPA or the national supervisors may have together with some proposals of addressing these concerns. The said concerns cover everything from the lack of clarity on the underlying assumptions of VA, to the possibility of cliff-edge effect from the EU member state VA during some particular periods. The secondary topic of this article is the General Application Ratio and the level it should be set to. The EIOPA argues it should be in the region between 65% to 85%.

29 Jan, 2021
A practical guide for insurers to incorporate climate risk in their Own Risk and Solvency Assessments (ORSA)

Climate change poses a serious risk for society and for (re)insurers, with the harmful impact of global warming already being visible. Without further international climate action, global average temperatures and the associated physical risks will continue rising, resulting in increased underwriting risk of insurers, impacting asset values, and challenging their business strategies. On the 5th October 2020, the EIOPA has published a consultation paper on the use of climate change risk scenarios in the ORSA in the form of a draft supervisory Opinion. The consultation is a follow-up to the Opinion on Sustainability within Solvency II released in September 2019 which recommended that (re)insurers should consider climate risks beyond the one-year time horizon within their system of governance, risk-management system and ORSA.