1. Solvency II regulatory reporting
bold)
Subtitle for event – (Arial 28pt)
Giles Fairhead Head of Department, Retail Life
Life Insurance Division
Date (Arial 16pt)

2. Agenda Solvency II reporting and submissions timetable
The PRA’s expectations in the preparatory phase
The PRA’s data collection system, firm testing and on-boarding plan
Asset data reporting expectations
Current ‘hot topics’ from industry engagement

3. Reporting and disclosure is integral to Solvency II
Three-pillar approach
Pillar 1
Quantitative requirements
Own Funds (including balance sheet)
Minimum capital requirement (MCR)
Solvency Capital Requirement (SCR)
Pillar 2
Qualitative requirements and supervisory review
Governance, risk management and required functions
Own risk and solvency assessment
Pillar 3
Reporting, disclosure and market discipline
Supervisory Process
Disclosure
Transparency
Support of risk-based supervision through market mechanisms
Pillar 2
Pillar 3
Market-consistent valuation of balance sheet
Risk Based requirements
Business governance
Risk-based supervision
Disclosure
Transparent markets

4. Quantitative reporting templates
The Solvency II reporting requirements include qualitative and quantitative reports
The Solvency II regime will place new reporting requirements on firms covering both quantitative and qualitative aspects
The Solvency and Financial Condition Report (SFCR) and the Report to Supervisors (RSR) contain both qualitative and quantitative reports
Quantitative reporting templates
Narrative reports
Sections covered
Balance Sheet
Premium claims and expenses
Own funds
Variation analysis
SCR and MCR
Assets
Technical provisions
Reinsurance
Group reporting
Business and performance
System of governance
Risk profile
Valuation for solvency purposes
Capital management 4

5. Pillar 3 will require firms and groups to make certain reports and templates publically available
The Pillar 3 reporting requirements under Solvency II focus on two main reports, the Solvency and Financial Condition Report (SFCR) and the Regular Supervision Report (RSR)
A limited number of quantitative templates and qualitative data are required to be made publically available in the SFCR
All quantitative templates and a detailed set of qualitative data is required to be reported privately to the regulator in the RSR
Audience
Public
Private
Narrative Reports
Type
Qualitative
Frequency
Annual
Annual summary
In full every 3 years
Quantitative Reporting Templates
Quantitative
Annual & Quarterly
National Specific Templates
N/A
Annually
Other
Major developments affecting relevance of SFCR will require an updated SFCR
PRA ad-hoc reporting will continue 5

6. Implementing Technical Standards
Solvency II reporting policy timetable
2014
2015
2016
SII Directive
31 March 2015
SII Transposition
1 January 2016
SII Implementation
February 2015
Guidelines 1 Publication
Guidelines
Jun – Sep 2014
Guidelines 1 Public Consultation
July 2015
Guidelines 2 Publication
Dec 2014 – Mar 2015
Guidelines 2 Public Consultation
Implementing Technical Standards
October 2014
ITS 1 Publication
June 2015
ITS 2 Publication
Dec 2014 –Mar 2015
ITS 2 Public Consultation
Taxonomy
July 2014
Final taxonomy for preparatory phase
July 2015
Final SII taxonomy
April 2015
Candidate Final SII taxonomy
December 2014
Draft SII taxonomy

7. The PRA is seeking industry feedback on a range of topics
The PRA will continue to publish consultation papers on Solvency II to gain industry feedback. Supervisory statements will be published ahead of transposition at 31 March 2015
The PRA proposed 11 NST templates issued as part of CP16/14.
Remaining NST templates are expected to be issued for consultation before the end of the year.
The PRA expects to issue further information, as required, on materiality levels, exemptions and the application of proportionality later this year or early 2015.
Number
Template Name
NS.01
With-profits value of bonus
NS.02
With-profits assets and liabilities
NS.03
Pools
NS.04
Assessable mutuals
NS.05
Revenue account (Life)
NS.06
Business model analysis (Life)
NS.07
Business model analysis (Non-Life)
NS.08
Business model analysis – financial guarantee insurers
NS.09
Best-estimate assumptions for life insurance risks
NS.10
Projection of future cash flows (best-estimate – non-life: sub-classes)
NS.11
Non-life insurance claims information (general liability sub-classes)

8. Current timetable for submission of returns for firms and groups with 31 December year end
Firms with non-December year end should speak to supervisors for their submission timetable
2015
2016
2017
Solvency I Submissions
March 2016
Last Solvency I submission
Solvency II Submissions
Preparatory phase returns
Cat 1-3 firms only
Day 1 returns
SII returns
All directive firms and groups
Solos
1 Jul
25 Nov
Annual
Qrtly
20 May
One off
26 May
25 Aug
25 Nov Q1 Q2 Q3
25 Feb
19 May Q4
Annual + NST
Groups
15 Jul
6 Jan 2016
Annual
Qrtly
20 May
One off
7 Jul
6 Oct
6 Jan Q1 Q2 Q3
7 Apr
30 Jun Q4
Annual
NB: Details dependent on final text.
NB: Please be aware that the date of Day 1 returns was changed to 20 May 2016 for both solos and groups in the Delegated Act. This change was made on the table above after the PRA Solvency II Conference on 17 October

9. NSTs not expected for interim reporting
The PRA’s expectations of firms participating in the preparatory phase
A significant increase in the extent and depth of insurance data shared between firms and the PRA
Expectations of firms were set in December 2013 when the PRA published Supervisory Statement 4/13 on applying EIOPA’s preparatory guidelines
Category 1-3 firms and groups required to report. All firms and groups in scope of preparatory reporting should have been notified in January 2014
The preparatory phase should be used by firms to prepare for Solvency II implementation and returns should be of a high standard and quality
Firms and groups will need to be on-boarded onto the BoE PRA Data Collection system in Q1/ Training will also be made available
All quantitative firm returns are expected to be in XBRL format with qualitative returns in PDF
NSTs not expected for interim reporting

10. Firms will submit returns via a new reporting system
The PRA will use a new system to support data collection and XBRL processing, which firms will be able to access via a web portal
All returns must be provided in the following formats:
QRTs – in XBRL
Qualitative returns – in PDF
NSTs – in Excel (initially, may move to XBRL in the future)
Firm submits
Feedback provided to firms on validation and plausibility
Re-submissions may be required or further explanation requested
QRTs
NSTs
Qualitative returns
Collections system
Secure Web Portal
XBRL processor
Validation
Plausibility
EIOPA
PRA Supervision

11. The PRA will be conducting industry testing and on-boarding firms throughout 2015
2014
2015
2016 Q4 Q1 Q2 Q3 Q4 Q1
PRA XBRL testing
Industry testing (Cat 1-3)
Industry testing (all other firms)
On-boarding (Cat 1-3)
On-boarding (all other firms)
The PRA intends to implement and start testing the data collection system and the XBRL processor in Q4 2014
Data collection system testing with firms is planned in two stages;
Industry testing for Cat 1-3 firms – Cat 1-3 firms will be expected to test the PRA external web portal prior to June 2015 including logging in, setting up their return and submitting test data
Industry testing for non Cat 1-3 firms – from Q all other firms will be provided the opportunity to also test the Portal, to trial logging in, setting up returns and uploading files
Firms will be expected to on-board, with those participating in the preparatory phase prioritised

12. Solvency II reporting increases the amount of detailed information reported
Solvency II returns will require the submission of detailed asset data for the first time. As a result, the volume of data submitted is expected to significantly increase.
This will include line by line asset data which must include a range of detailed information about the asset including items such as NACE codes and geography.
Given this increase in granularity the PRA expects firms to need to have:
Early engagement with the organisations who manage their assets to prepare for the requirements that will be placed upon them as a result of the asset data submissions
Early engagement with other stakeholders (e.g. IT providers, information providers)
The PRA would expect cat 1-3 firms to be well advanced in this regard as some of this granular information will be required in the preparatory reporting.

13. Audit and assurance of regulatory returns
Current ‘hot topics’ from the industry engagement
The PRA Solvency II regulatory reporting industry working group acts as a forum for the PRA and industry representatives to discuss technical and practical implementation challenges.
Three key areas where firms are seeking further clarity have been highlighted.
Asset Look through
Audit and assurance of regulatory returns
Materiality
threshold

14. Addressing firm questions
If firms have questions regarding Solvency II regulatory reporting requirements and interpretation, they should :
Check the published PRA Q&As on the BoE PRA website
Submit questions to EIOPA’s question and answer process if the questions have not already been answered
Help the PRA track questions submitted to EIOPA by notifying
The PRA will continue to publish answers to questions received from firms in the run up to implementation

15. Key messages – regulatory reporting
The PRA is building a new data collection system and will be ready to receive the submission of information in the preparatory phase from June 2015
The PRA is consulting on NSTs in CP16/14, final templates will be published in a policy statement ahead of transposition. Further consultation papers will be published on reporting including Lloyd’s NST and firm exemptions from Solvency II reporting
Reporting policy is increasingly stable, there are some outstanding issues that the PRA is aware of through its work with the regulatory reporting industry working group
Testing of the new system is expected to start in Q and will be phased in the run up to implementation. Firms will be expected to on-board to the system from Q Cat 1-3 firms participating in the preparatory phase will be prioritised for both testing and on-boarding

16. Next steps for firms
Firms with a 31 December year end should be aware of when they will be involved in PRA testing, on-boarding and when they need to submit their first returns
Cat 1-3 firms
All other firms
Testing
February 2015 for selected subset of firms. (participating firms have already been notified)
Q for all other Cat 1-3 firms
Starting Q3 2015
On-boarding
Starting Q1 2015
Starting Q4 2015
First preparatory phase returns
Solos - 1 July 2015 , Annual submission
Groups - 15 July 2015, Annual submission
No reports due during preparatory phase
First Solvency II returns due
Solos – 20 May 2016, Day 1 submission
Groups – 20 May 2016, Day 1 submission
Solos – 20 May 2016 , Day 1 submission
NB: Please be aware that the date of Day 1 returns was changed to 20 May 2016 for both solos and groups in the Delegated Act. This change was made on the table above after the PRA Solvency II Conference on 17 October