Insurance and Re-Insurance companies operating in Europe must comply with Solvency II by 2012. Highly qualified actuaries and Insurance industry experts will be required to develop models and perform complex calculations to achieve Solvency II compliance.
Employing the best actuaries in the world, developing the best algorithms, and building the best models will count for nothing, if the underlying data used in the models is inappropriate, incomplete or inaccurate. Not only must the underlying data be appropriate, complete and accurate, companies must provide evidence of their Data Governance processes to prove it.
Article 82 of the Solvency II Directive could not be more clear: “Member States shall ensure that insurance and reinsurance undertakings have internal processes and procedures in place to ensure the appropriateness, completeness and accuracy of the data used in the calculation of their technical provisions.”
Data Governance provides the “processes and procedures to ensure the appropriateness, completeness and accuracy of data”. For the past 15 years, I have specialised in Data Governance for critical regulatory compliance programmes.
Over a series of posts I explore the common sense data quality standards required for Solvency II compliance. The same common sense standards that can enable you get the most from your data, regardless of the industry you are in.