Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

TVM

Integrated statutory and solvency II reporting with Tagetik at TVM

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

AGENDA

A. Profile of TVM

B. The challenges TVM faced

C. The decision for Tagetik

D. Project approach: Statutory reporting and Solvency II

E. The result

F. Lessons learned / tips & tricks

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Profile of TVM

A. Founded in 1962

B. Leading Dutch insurance company specialized in European insurance of transport and mobility

C. Growth strategy. Recently acquired several Dutch transportations insurance companies (i.e. Noord Nederland Scheepsverzekeringen, SON and OVZ)

D. Offers both non-life (i.e. motor vehicle liability and transport insurance) and life (income protection) insurance products

E. ± 400 FTE

F. 2 solo insurance companies, approx. 30 entities

G. Branches in Holland, Belgium, Luxembourg, Denmark, France and Germany

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

A. Reporting environment before implementation Tagetik

B. Reporting environment consisted of linked excel sheets with a large number of manual entries needed, resulting in long closing periods and a poor audit-trail

C. Solvency I reports manually generated (no ETL). Management information system not disclosed

D. Solvency II resulted in an increasing demand for a uniform and efficient reporting environment

The challenges TVM faced

Sources

Polisadministraties

Projectiesystemen

Grootboek

Kasbank/ beleggingen

Etc..

Financial statements

Solvency I

Management reporting

Reporting processes not ready for

Solvency II pillar 3

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

The decision TVM made

A. TVM made a strong decision to replace its current excel reporting environment for Tagetik, a uniform, one-version-of-the-truth, consolidation and reporting environment

B. One single solution for both statutory, solvency II and internal management reporting

C. The main reasons why TVM chose for Tagetik:

A. Tagetik offers all functionality needed for TVM

B. Pre-built solution for Solvency II pillar 3

C. Good customer references (i.e. SNS REAAL)

D. Competitive price

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Key features of Tagetik for TVM

A. One uniform consolidation and reporting environment for all entities

B. Fully automated consolidation and reporting, minimum need for manual entries and corrections

C. One single solution for data collection, (historical) data storage, entry forms, consolidation and reporting

D. Built in financial controls and validations

E. Traceability and auditability

F. Solvency II starter kit that enabled TVM to make an important step in the implementation of pillar 3

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Key features of the Tagetik solvency II starter kit for TVM

A. Pre-defined application covering all QRT’s, reports, entry forms and calculations (partly) for the SCR and MCR aligned with the latest regulations from EIOPA for Solvency II pillar 3

B. Pre-built in validations as described in EIOPA’s log files

C. Integrated solvency II and statutory reporting environment. Single source reporting

D. Traceability and transparency of reported figures for Solvency II

E. In future, automated export of pillar 3 information to XBRL format (no more manual entry in E-line of other regulatory systems required)

F. Possibility to add company specific validations/ reports and analyses

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Project approach TVM - roadmap (1)

organisation and control

Visie

Implementation of statutory reporting in Tagetik

Stage 1

Implementation of Solo QRT’s with the Tagetik

starter kit

Implementation of Group QRT’s with the Tagetik starter kit

Implementation of management reporting in Tagetik

Uniform, single-source, efficient reporting environment for both statutory, solvency II

and management reporting

Current status

Stage 2

Stage 3

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Project approach TVM - roadmap (2)

A. Stage 1: Statutory reporting

B. Stage 2: Solvency II Solo reporting

C. Stage 3: Solvency II Group reporting and mgt. reporting

… With a staged approach TVM was able to benefit fro m Tagetik for statutory reporting in short termAlso, TVM was able to manage the relations between statutory reporting and Solvency II reporting

because parts of the Solvency II QRT ´s elaborate on statutory data

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Stage 1: statutory reporting (1)

A. Scope:

A. Statutory reports (quarterly and yearly financial statements)

B. Actual, budget and forecast figuresC. Data from G/L collected by ETL, other data sources

manual entry in TagetikD. In future stages other sources can be disclosed to

Tagetik by ETL

… A key success factor in projects like this is to h ave good insight into the relations between the reports and to start with a clear and p referably small scope

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Stage 1: statutory reporting (2)

Design Added value

Reports One set of standard reports that can are re-used for each

entity

Re-use of the same data element in several reports to assure

data consistency

Validations Built in validations to assure data quality

Dashboard to monitor data quality

Mapping Built in automated mapping for all entities

Formatting One standard formatting for all reports

Easy to use template for future reports

ETL Automated data load from G/L to Tagetik, no more seperate

data files and a minimum number of manual entries needed

Intercompany Automated consolidation and intercompany elimination

Dashboard report for intercompany differences

Processes Audit-trail of changes visible in Tagetik

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Project approach TVM - roadmap

A. Stage 1: Statutory reporting

B. Stage 2: Solvency II Solo reporting

C. Stage 3: Solvency II Group reporting and mgt. reporting

… Many of the data in the Solvency II solo QRT’s ela borate on statutory data, that is why the Solo QRT ´s are planned in stage 2. Parts of the Solvency II implementation in Tagetik

can be executed parallel to the statutory implement ation

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Stage 2: Solvency II Solo reporting

A. Key issuesA. The design of the Solvency II application is easy because the datamodel,

reports and entry forms are pre-built by Tagetik in the Solvency 2 starter kit

B. The biggest challenge is how to collect the Solvency II data from the different sources to the Tagetik Starter kit

C. To assure data consistency it is crucial to have insight into relationships between the statutory and solvency II data. See example below for the balance sheet.

Generalledger

StatutoryBalance sheet

Solvency IIBalance sheet

BS-C1

Datamodel

Most insurance companies documented definition and

source analyses for the QRT’s. The info can be useful for the design of

Tagetik

One mapping from G/L to Tagetik

Tagetik

By applying one datamodel and one

mapping from the G/L to Tagetik, data consistency

between statutory and Solvency II data is

assured

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Project approach TVM - roadmap (2)

A. Stage 1: Statutory reporting

B. Stage 2: Solvency II Solo reporting

C. Stage 3: Solvency II Group reporting and mgt. reporting

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Stage 3: Solvency II Group reporting

A. Focus will be on QRT’s that need to be reported on group level (Cooperatie TVM)

B. This includes i.e. consolidated Group Solvency II figures (balance sheet and other QRT’s)

C. Special attention to calculation of group SCR and MCR

D. Stage 3 is currently planned at TVM

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

The result

SourcesPolisadministraties

Projectiesystemen

Grootboek

Kasbank/ beleggingen

Etc..

Financial statements

Solvency 2

MgtReports

How reporting at TVM used to be organized

How reporting at TVM is currently organized

Many linked excel sheets

Many manual corrections needed

No standard reporting (several mappings)

Poor audit trail, tracibility and documentation

Long closing period

No processes in place for Solvency II pillar 3

One uniform integrated reporting environment for statutory, solvency II and in future also internal mgt reporting

Fully traceable and auditable figures

Documented processes

Solvency II reporting in place for solo entities

Lean-and-mean and faster closing cycle

No reporting processes for Solvency 2

SourcesPolisadministraties

Projectiesystemen

Grootboek

Kasbank/ beleggingen

Etc..

Financial statements

Solvency I

Mgt. reporting

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

The result

With this, TVM is proud to be the first European insurance company to have fully integrated and standardized

statutory and solvency II reporting processes producing auditable and traceable data

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Lessons learned / tips & tricks – Solvency II (1)

A. Create a single database and data model in Tagetik and a single mapping from general ledger to Tagetik for both Solvency II and Statutory purposes. This assures data consistency, prevents unnecessary checks and balances and is at lower cost

B. Use the information from the QRT definition and source documentation to create the mapping for all financial QRT’s

C. In case Tagetik will be utilized for both statutory and solvency II purposes, elaborate on the pre-defined starter kit application (use the starter kit application as a basis). This prevents a synchronizing effort between statutory and solvency II at a later stage

D. Use data from the national Solvency II dry run (Holland parallel run) for testing purposes. The starter kit parameters can fairly easy be adjusted to national requirements (the starter kit is currently based on parameters of QIS 5)

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Lessons learned / tips & tricks – Solvency II (2)

E. The starter kit currently services parts of the SCR and MCR calculation. Keep in mind that with the current version of the starter kit, insurance companies will have to continue to perform sub-calculations for the SCR and MCR

F. The primary goal of the starter kit is of course to meet reporting requirements of Solvency II. The pre-defined Solvency II starter kit is aligned with the QRT’s. Yet, it is possible and may also be interesting, to add more detail to the starter kit for analyses purposes (for instance to analyze data on product level or customer level)

G. The pre-defined validations in the Solvency II starter kit are based on the validations documented in the log files, enclosed by EIOPA to the QRT’s. The validations published by EIOPA are incomplete (for instance there are no validations between the technical provision QRT’s (TP) and the Balance sheet (BS). Create company specific validations to ensure data consistency

H. Installing the starter kit is a relative small project. By far, most of the effort will be to disclose the source systems

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Lessons learned / tips & tricks – General

A. Define a small and clear scope. This will simplify the implementation and benefits are gained sooner

B. Start the project with a profound and detailed design. Document the design and requirements well.

C. The most important design issues are: scope of reports, level of chart of accounts, design of custom dimensions, detail-level of historical data and last but certainly not least: ETL

D. Create a skilled team. An experienced project manager with both knowledge of finance/ IT, Solvency II and the skills to manage complex projects is crucial for a successful implementation as well as team members with profound knowledge of Tagetik and ETL

E. Garbage in, garbage out. Keep in mind that Tagekit is a reporting system, and in most of the times the final chain in the information supply chain. In some cases it may be better to solve issues in the source before implementing a reporting system

F. Let controllers/ other “internal” colleagues participate in the implementation project as much as possible. This improves the quality of the project, reduces cost and through learning by doing, knowledge is effectively transferred

Tagetik

Tagetik 3.0

Benefits & TCO

Case Studies

Vision & Mission

The Market

Thanks for your attention !

For more information, please contact:

Tagetik NetherlandsMarco van der Kooij

www.tagetik.nl / www.inovasion.nl

Hulsker Finance & Business ConsultancyAuke Jan Hulsker www.hulsker.nl

This presentation is prepared by Auke Jan Hulsker, project manager in reporting solutions for financials institutions and specialist in Solvency II. Auke Jan is

currently as a project manager responsible for the implementation of Tagetik IFRS and Solvency II at TVM and Generali Netherlands