How do you collect your data?

Welcome to part 4 of Solvency II Standards for Data Quality – common sense standards for all businesses.

In my last post I highlighted the Solvency II requirement for Data Quality Management processes, which must include:

  • Assessment of the quality of your data
  • Resolution of material problems identified
Have you included plans for data cleansing to resolve material problems identified? Furthermore, have you considered how you plan to prevent the problems recurring? Solvency II requires you to do this, as set out in the following paragraphs of the CEIOPS’ (EIOPA) advice (Consultation Paper 43):

3.36 The assessment of data quality should have due regard to the quality and performance of the channels used to collect, store, process and transmit data…

Your “Data Supply Chain” is the means by which you “Collect, store, process and transmit data…”. You are expected to know your data supply chain, and to manage it effectively.

3.37 If material problems with the verification of the data quality criteria have been identified, the insurer should try to solve them within an appropriate timeframe… and should work towards the improvement of the data collection, storage or other relevant internal processes, so as to ensure the quality of the future data. Those data limitations should be appropriately documented, including a description of how such situations can be remedied and the assignment of responsibilities within the undertaking.

How do you collect your data?