Solvency II

Meet your obligations under the Solvency II regulation, and access the necessary data needed to assess your capital adequacy.

Our take on Solvency II

Solvency II laid out a fresh set of regulatory requirements for European insurance firms. Its core aim is to harmonise capital requirements and risk management standards for the insurance industry. 

The Solvency II framework has three areas, often referred to as pillars:

  • Pillar 1 sets out quantitative requirements – these include rules to value assets and liabilities, to calculate capital requirements and to identify eligible proprietary funds to cover those requirements.
  • Pillar 2 sets out requirements – for risk management and internal governance, as well as the details of the supervisory process with competent authorities.
  • Pillar 3 addresses transparency – reporting to supervisory authorities and disclosure to the public, enhancing market discipline and increasing comparability, leading to more competition.

We can help you meet Pillar 1 and Pillar 3 obligations under the regulation. And we provide you with the necessary data needed to assess your capital adequacy.

From January 1, 2020, insurance regulator EIOPA began to use LSEG as its source for risk-free rate (RFR) term structures. Actuaries at insurance companies can gain a four-day timeliness advantage by taking the underlying data directly from us, rather than waiting for the official publication by the regulator.

How it works

Three key stages to our Solvency II solution

  1. 1
    • Clients submit their ISIN lists to a password protected secure FTP site.
    • The LSEG holdings team works with fund management companies to retrieve unembargoed fund constituent data for Solvency II reporting purposes.
    • The aggregated files with two levels of look-through are posted onto the clients’ secure FTP site.
    An infographic presenting Stage 1 of our solvency ii solution explaining the client to client process
  2. 2
    • Identifiers for the clients unembargoed holdings data are loaded into DataScope Select.
    • Applicable content is retrieved from DataScope Select report templates, including pricing, reference, entity and analytical data.
    • The client aggregates their required data into an enriched holdings file.
    An infographic presenting Stage 2 of our solvency ii solution explaining the client to client process
  3. 3
    • The clients’ enriched holdings file and proprietary data are provided to LSEG Professional Services’ Solvency II software solution.
    • This data is combined and used to populate the current version of the Tripartite Template.
    • The finalise data is sent back to the client for submission to the regulator, EIOPA.
    An infographic presenting Stage 3 of our solvency ii solution explaining the client to client process

Features & benefits

Why partner with LSEG for Solvency II

Non-embargoed fund holdings

Also known as fund look-through data, provided in a consolidated feed (subject to non-disclosure agreements with fund management companies). This ensures that accurate fund constituents are sourced and aggregated for subscribers, maximising their ability to meet regulatory reporting timelines.

Software Service

LSEG Professional Services offers an extract, transform and load (ETL) software service. It’s a service which can combine full holdings data with pricing and reference. It also holds a client’s own proprietary data to populate the Tri-Partite Template for an insurer’s quarterly regulatory reporting obligation to the European Insurance and Occupational Pensions Authority or EIOPA.

Pricing and Reference Data

An extensive library of pricing and reference data, including a full complement of attributes needed for TPT/Tri-Partite Template submission such as CIC, LEI and Ratings. Our evaluated pricing team covers less liquid and hard-to-price assets, meaning the additional capital requirements usually required from insurers when asset valuations are not available may be mitigated against.

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