The first pillar regulates capital adequacy. Insurance companies are obliged to calculate the Solvency Capital Requirement (SCR) values of their investments on a monthly basis. The required overview of the financial assets must include 130 date fields.
The second pillar impacts risk management. Qualitative requirements (“fit and proper” criteria) are imposed, for example, on Boards of Directors of insurance companies and regulate quality assurance and data security.
The third pillar defines reporting obligations. Firms are required to report using a standardised form to ensure transparency towards regulators and investors. The standard format is the Quantitative Reporting Template (QTR).
are obliged to monitor the data quality of their direct and indirect investments. Furthermore, they must ensure that their SCR calculations reporting is classified correctly.
must provide detailed portfolio data to the insurance companies. Investment managers without an insurance mandate are affected via target funds or fund- linked insurance structures.
Fund administrators and management companies
often take on the services of the investment manager and insurance companies. They therefore need an adequate European system which can integrate external look- through data and enrich internal data.