Solvency II is the European Union's (EU) initiative to reform regulation of insurance companies, by providing a consistent standard of capital requirements and risk management standards with the goal of increasing protection for policyholders. In January 2016, Solvency II was implemented by the 28 European Union (EU) Member States plus three of the European Economic Area (EEA) countries, and the UK.
The Financial Services Authority (FSA), now the Prudential Regulatory Authority (PRA), published several guidelines and audit based findings regarding the control of EUCs. These FSA findings show areas of need where an effective end-user computing management system is crucial including risk management, data directory, data quality, change management, approval processes, security, version control, and documentation. In each of these areas, the Solvency II regulation states specific requirements for compliance and companies need to ensure they have a sufficient system in place.
Prudential Regulation Authority - Solvency II: Internal Model Approval
"Insurance and reinsurance undertakings shall have in place an effective risk-management system comprising strategies, processes and reporting procedures necessary to identify, measure, monitor, manage and report, on a continuous basis the risks, at an individual and at an aggregated level, to which they are or could be exposed, and their interdependencies." - Solvency II Directive, Article 44: Risk Management 18
Process Data Review Findings -February 2016
"Spreadsheets and other user-developed applications are a form of information technology and all information technology needs to be appropriately controlled."- Solvency II: internal model approval process data review findings, 4.36, February 2016
Prudential Regulation Authority - Solvency II: Internal Model Approval
CIMCON supports Solvency II´s Pillars 2 and 3 by providing a solution that helps ensure governance and risk management compliance and supervisory review processes with:
A fully web-based EUC management and control system
Workflows with electronic signatures facilitate final reviews and sign-off
Automated inventory and risk assessment of all spreadsheets and EUC files
Management reporting based on exceptions, dashboards and alerts
Multiple levels of review and audit trails at the workbook, worksheet and cell level