Enhanced Risk and Asset Management Through a Solvency II Solution

"We cut the time, needed for mandatory reports preparation, from 25-30 man-days to 1-2 man-days.”

Dimitar Dimitrov | CIO

The Case

 The main reason which led to the implementation of Solvency II solutions was adopted on November  25, 2009 Directive 2009/138 / EC, widely known as “Solvency” or Solvency II. In 2015, EuroIns took the strategic decision to improve its performance by increasing its capital to nearly 10 million Euros, which was part of the measures, necessary to meet future requirements.

Customer's Business Goals

 
  • Increase the efficiency of internal processes.
  • Achieve more effective risk management, compliant with the latest EU requirements.
  • Provide all necessary assets.
  • Eliminate of the risk of bankruptcy.
  • Cover the requirements of Solvency II directive.

Steps of implementation

  • Create initial ETL (Extract, Transform and Load) data and analysis of the data model of EuroIns.
  • Creation of a framework plan for the preparation of reports.
  • Installation and configuration of IBM solutions components for Solvency II.
  • Development of an ETL interface for Bulgaria , Romania , Macedonia, Ukraine.
  • Validation and development of quantitative reports of Cognos.
  • Migration to the production environment and the transmission.

The Solvency II Solution

 

The IT solution that IBM and ScaleFocus implemented consists of the most modern technologies that allow working with a huge amount of heterogeneous data, analyzes, risk models, and transparent corporate reporting. Solvency II Euroins solution is based on SQL Server 2012 platform to store all information necessary for the preparation of reports. The same server repository is used for all components. The data used for compiling the reports in IBM Cognos BI and visualization, as well as generating final xBRL files from IBM Cognos DM.

The main features that the solution provides are:

  • Ability to work with diverse data type – as with data from internal systems and such from external sources.
  • The conversion of the original data through ETL processes in a form suitable for use in a database.
  • Assessment and forecast of insurance risks.
  • Preparation, analysis, assessment and comparison between different actuarial models.
  • Implementation of stress tests for the company.
  • Automated risk measurement of processes for Solvency II Compliance.
  • Aggregation and drill down tool for results’ and ‘what if’ analysis.

 

Workflow management and audit tools for governance control:

  • Display information from the database in a variety of graphs, tables and charts.
  • Dynamic reflection of changes of data input in the final report.
  • Automated generation of universal statements that are compatible with Microsoft Office, as well as those required by The European Insurance and Occupational Pensions Authority (EIOPA) reports xBRL format.

The Achievements

  During the implementation of the project, Euroins used the opportunity to optimize its internal models of asset management and insurance risk and its predictive modeling and automated quantitative reports. The effectiveness of the implemented system is confirmed by the results achieved during its use, including:

  • 15x to 20x faster reporting process.
  • The unlimited scalability enables seamless future integrations with various BI systems.
  • Increased collaboration across all departments due to optimized business processes at all levels throughout the company.
  • Eliminated error-prone manual tasks and processes.
  • Enhanced stability and corporate reliability to ensure payment of all amounts taken out insurance in case of disaster.
  • Increased customer satisfaction.

About EuroIns

EuroIns Insurance Plc is one of the first insurance companies in Bulgaria that received a license for General insurances. EUROINS – HEALTH ASSURANCE LLC is working with young team of managers and employees who fulfill ambitious program for development of the company on the market of Supplementary Voluntary Health Insurance in Bulgaria. Euroins’ portfolio includes over 40 insurance products.

 

The commercial model of the Company is directed to offering a combination of health insurance packages which are covering wide spectrum of health risk and provide complex medical service to the customers. The company has offices in over 87 cities around the country and it is operating with more than 4000 employees, brokers and insurance agents.