When you visit your family doctor, you expect him or her to be familiar with your medical history. You expect the information your doctor keeps about you to be complete, appropriate and accurate. If you’re allergic to penicillin, you expect your family doctor to know about it. Your health and well being depends on it. Call it applied common sense.
In running your business, you make business critical decisions every day. You base your decisions on the information available to you, information that you would like to be complete, appropriate, and accurate. Call it more applied common sense.
The Solvency II Standards for Data Quality (EIOPA Consultation Paper 43) apply the same common sense. They require insurance companies to provide evidence that their Solvency II submissions are based on data that is “complete, appropriate, and accurate”.
This is the first of a series of posts in which I plan to explore the “common sense” Solvency II standards for data quality, and I hope you will join in.
What is Solvency II? When you insure your family home, you would like to think your insurance company will still be around, and will have the funds to compensate you in the event of a fire, break-in or other disaster. Solvency II is seeking to do just that. Solvency II requires Insurance companies to prove they have enough capital funding to prevent them failing. Given the backdrop of the ongoing world financial crisis, I believe this is a reasonable objective.
As you may have noticed, I am a fan of “common sense”. Think about it… would you knowingly make a business critical decision on the basis of information that you know to be “incomplete, inappropriate or inaccurate”? I think not. So, how do you know that your information is “complete, appropriate and accurate”? The standards set out in The Solvency II Standards for Data Quality enable ALL organisations, not just insurance companies, apply the same common sense standards.
As I add posts, I will link to them from here.
In my second post, I explore what exactly the terms “complete”, “appropriate” and “accurate” mean in the context of data quality for Solvency II, and what they mean for all organisations.
In my fourth post I ask “How do you collect your data“. I ask you this because common sense (and Solvency II) requires that you know how you collect your data, how you process it, and how you assess the quality of the data you collect and process.
My fifth post Data Governance – Did you drop something? explores the risk associated with data extractions.
Please join in this debate and share your experience…