Solvency II firms
There are specific reporting requirements for firms under Solvency II. This section sets out information under the following areas:
- Regulatory reporting:
a. Pillar 3 reporting requirements
b. Implementation phases and transitional measures
c. Reporting schedules
d. Reporting clarifications
e. National Specific Templates (NSTs)
f. Standard formula SCR reporting templates for firms with an approved internal model
g. Internal model outputs
h. Market risk sensitivities
i. Quarterly minor model change reporting for firms with an approved internal model
j. Legal Entity Identifiers
- Industry working group
- Frequently Asked Questions
- How to report: BEEDS portal (Bank of England Electronic Data Submission portal)
1. Regulatory reporting
a) Pillar 3 reporting requirements
The Solvency II Pillar 3 regulatory reporting requirements came into force on 1 January 2016. Firms must produce two key reports:
- the Solvency and Financial Condition Report (SFCR): Firms are required to disclose this report publicly and to report it annually to the local National Competent Authority. The SFCR includes both qualitative and quantitative information.
- the Regular Supervisory Report (RSR): This is a private report to the supervisor and is not disclosed publicly. Firms submit this report to the local National Competent Authority in full at least every three years and in summary every year. The RSR includes both qualitative and quantitative information.
For more information see the European Insurance and Occupational Pensions Authority (EIOPA) Guidelines on Submission of Information to National Competent Authorities. In addition firms must comply with the PRA’s rules and expectations as set out in the PRA Rulebook and supporting policy.
b) Implementation phases and transitional measures
There are two distinct phases of regulatory reporting and each has different requirements. These are the transitional phase which is the three years following implementation on 1 January 2016, and the period following the transitional phase (from 1 January 2020).
Transitional measures for reporting and public disclosure are set out in Policy Statement 2/15 'Solvency II: a new regime for insurers' and the PRA Rulebook.
The transitional measures relate to:
- the regular supervisory report and annual quantitative templates, including annual national specific templates
- quarterly quantitative templates, including quarterly national specific templates
- the solvency and financial condition report.
c) Reporting schedules
The following document sets out the reporting schedule for a firm with a year end of 31 December:
PRA Solvency II reporting schedule: for firms with a year end of 31 December
The following document sets out the reporting schedules for non-December year end firms throughout the three-year transitional phase (1 January 2016 to 1 January 2020):
PRA Solvency II non-December year end reporting schedules
We have provided these dates to help firms prepare for Solvency II but it remains a firm’s responsibility to liaise with their usual supervisory contact to confirm when we require interim reports to be submitted.
Where the reference or submission date falls on a weekend or bank holiday, the last business day before this will apply instead.
Update June 2018: In addressing feedback received to CP11/18 'Solvency II: Changes in reporting format', we are keen to ensure firms have a sufficient period to implement proposed changes for year-end 2018 reporting (for year-ends 31 December 2018 onwards). The following table outlines the planned dates for the availability of the required information. In view of the degree of internal reorganisation and IT infrastructure required by firms to facilitate the migration to the new reporting format, the indicative timelines set out above are intended to assist for planning purposes. For the avoidance of doubt, these dates are approximate and may be subject to change.
Update October 2016: Firms should be aware that on 6 July 2015, EIOPA published its 'Final report on public consultation No. 14/052 on the implementing technical standards on the templates for the submission of information to the supervisory authorities.' In Section 2.44 of this document EIOPA confirms that the template S.29 is expected to be submitted to NSA only in 2018, referring to 2017 as, at that date, it would focus on the variation of excess over liabilities between 2016 and 2017.
d) Reporting clarifications
On 11 May 2016, the PRA set out the basis of the correct allocation to the lines of business, and in consequence some issues on the unbundling of contracts, that the PRA expects for reporting insurance contracts under employers' liability insurance and motor insurance. The information in the note below is based on the Solvency II Directors’ update letter of 14 July 2015 on employers' liability insurance and motor insurance which was issued to firms to enable their compliance with Solvency II by 1 January 2016.
This note is relevant to all firms in scope of Solvency II and to the Society of Lloyd’s and relates to the Implementing Technical Standards (ITS) on Supervisory Reporting.
Business line reporting for employers' liability insurance and motor insurance, May 2016
On 18 December 2015, the PRA set out the basis of preparation on which it will accept look through reporting for Collective Investment Undertakings under template S.06.03.
Basis of preparation on which the PRA will accept look through reporting for Collective Investment Undertakings under S.06.03
e) National Specific Templates (NSTs)
We have produced National Specific Templates (NSTs) to address those areas which stem from specific national requirements or specificities of local markets, which are otherwise not addressed in the set of Solvency II harmonised templates.
Each Excel template has a corresponding LOG file which includes definitions on how to complete the templates. You should refer to the appropriate rules and supervisory statements to determine which templates you may need to submit.
Update March 2017: On Thursday 9 March 2017 the PRA published a document with details of minor reference corrections to the NS.05, NS.07 and NS.09 LOG files and to the NST submission workbook to be read alongside the materials and templates below. The corrected NS.05, NS.07 and NS.09 LOG files and updated NST submission workbook have been updated in the table below.
Updates to NST firms submission workbook and LOG files
*Following the publication of PS21/18 ‘Solvency II: Changes to reporting format’ on Thursday 26 July 2018 and SS6/18 'Solvency II: National Specific Templates LOG files' on Friday 6 July 2018 these templates and LOG files have updates that will come into effect from Monday 31 December 2018, available in the links below:
The NST Excel workbook is to be used for reporting templates NS.01 - NS.11.
The NST Lloyd's Excel workbook is to be used for reporting templates NS.12 and NS.13.
The validation rules for these workbooks are detailed in Bank of England Insurance Validations v1.0.0. Please note, the validation rules are not implemented in the Excel workbooks used for reporting. Instructions for completing the Excel spreadsheets are contained in the Bank of England Solvency II Filing Manual.
f) Standard formula SCR reporting templates for firms with an approved internal model
The technical package for standard formula reporting is available below.
g) Internal model outputs
h) Solvency II: Data collection of market risk sensitivities
On 18 October 2017, the PRA published PS25/17 ‘Solvency II: Data collection of market risk sensitivities’. The associated SS7/17 sets out the PRA’s expectations in respect of the reporting of sensitivities of solvency position to various changes in market conditions by firms with material exposure to market risk. It is relevant to Solvency II insurance and reinsurance firms holding, or intending to hold, material quantities of assets exposed to market risk.
Firms in scope can report sensitivities to various changes in market risks half-yearly using the following template. The SS refers to the year end 31 December 2017: firms’ submissions of the completed templates will be the solo Quantitative Reporting Template reporting deadline plus four weeks, ie 18 March 2018 for the first submission.
The PRA will inform firms individually through their usual supervisory contacts whether they fall within the scope outlined above. Out of scope firms that would like to submit the information may do so after discussion with their usual supervisory contact.
i) Quarterly minor model change reporting for firms with an approved internal model
On 13 July 2018 we published Quarterly Model Change reporting template QMC01 and QMC01 LOG file in an update to in an update to Supervisory Statement 17/16 ‘Solvency II: internal models – assessment, model change and the role of non-executive directors’.
QMC01 LOG file
j) Legal Entity Identifiers
EIOPA published its Guidelines on the use of Legal Entity Identifiers (LEIs) in September 2014, (EIOPA BoS-14-026). The Guidelines recommend that LEI codes should be used as unique identification codes for all institutions under the PRA’s supervisory remit. We intend to comply with these Guidelines.
In the UK, LEI codes are allocated and maintained by the London Stock Exchange, which has been endorsed by the UK’s Regulatory Oversight Committee (ROC) as an authorised Local Operating Unit (LOU) for the UK.
We requested all firms within the scope of Solvency II to request an LEI code by 30 June 2015, while all other insurers should have requested an LEI code by 30 June 2016.
For firms that are part of a group, we request that all entities within the group obtain an LEI code, including holding and dormant companies. We acknowledge that this may prove burdensome for some firms, however believe there are important advantages of using LEI codes for regulatory reporting across borders and the financial industry.
Should entities within a firm’s group be unable to obtain LEI codes, we suggest the firm follow EIOPA’s instructions on p84 of its document titled ‘Navigating through the Solvency II reporting and disclosure package: Note accompanying the public consultation on the Guidelines and ITS’ which states:
‘For non-EEA undertakings and non-regulated undertakings within the group, identification code provided will be provided by the group. When allocating an identification code to each non-EEA or non-regulated undertaking, it should comply with the following format in a consistent manner: identification code of the parent undertaking + ISO 3166-1 alpha-2 code of the country of the undertaking + 5 digits.’
When a code constructed in this manner is used within the reporting templates, the ‘Type of Code of Undertaking’ should be recorded as a ‘specific code’ rather than an LEI.
We request all firms to notify their usual supervisory contact to confirm that an LEI code has been requested, as appropriate.
Below provides information on the Solvency II taxonomy as well as the Bank of England Insurance XBRL Taxonomy which should be used for regulatory submissions. It also contains a link to the Bank of England's Solvency II XBRL filing manual.
Bank of England insurance XBRL taxonomy v1.0.0 feedback request
On 21 September 2018 we published a public working draft (PWD) of the standalone internal model output (IMO) and market risk sensitivities (MRS) taxonomy, alongside related technical artefacts, that will make up part of the Bank’s insurance XBRL taxonomy. The PWD follows Policy Statement 21/18 'Solvency II: Changes to reporting format' and is based on the proposals in Consultation Paper 10/18 'Solvency II: Updates to internal model output reporting'.
The taxonomy, data point model (DPM) dictionary, annotated templates and validation rules represent the reporting requirements as set out in: Supervisory Statement (SS) 25/15 ‘Solvency II: regulatory reporting, internal model outputs’; SS26/15, ‘Solvency II: ORSA and the ultimate time horizon – non-life firms’; and SS7/17 ‘Solvency II: Data collection of market risk sensitivities’. The DPM extends EIOPA’s Solvency II version 126.96.36.199 dictionary.
Firms and software vendors are invited to provide feedback on the data point modelling, annotated templates, validations, and XBRL taxonomy to email@example.com by Friday 28 September 2018. This PWD should not be used for reporting. By way of reminder, the PWD for National Specific Templates and standard formula reporting for firms with an approved internal model was published on Friday 10 August 2018, and consultation closed on Friday 24 August 2018: the final live release will consolidate all frameworks.
For more information on the planned dates for the availability of required information, please see the reporting schedules section (1c) above.
Bank of England Solvency II XBRL filing manual
We have produced the Solvency II XBRL filing manual to help firms and software vendors create XBRL instance documents for Solvency II Pillar 3 reporting.
There is a large degree of flexibility in the XBRL reporting standard and certain decisions have been taken to remove any ambiguity and uncertainty between firms and the Bank of England (and ultimately EIOPA). The filing manual describes the filing rules applicable to remittance of XBRL instance documents for Solvency II Pillar 3 reporting in the preparatory phase.
The aim of the document is to:
- define filing rules that limit the flexibility of XBRL in construction of XBRL instance documents (in addition to rules defined in the XBRL specifications and EIOPA Solvency II XBRL taxonomy)
- provide additional guidelines related to the filing of data in general or in specific cases
- provide guidance on common issues found with Solvency II XBRL instance documents and how to resolve them.
3. Industry working group
The PRA holds a Solvency II regulatory reporting industry working group as a forum for the PRA and industry representatives to discuss technical and practical implementation challenges. The working group is not intended as a forum to discuss policy interpretation.
The industry working group first met in November 2013 to discuss the terms of reference and agree the scope of the industry working group. Further meetings have been held regularly since then and a note of each meeting is set out below.
For notes of previous meetings, please see The National Archives.
The National Archives
4. Frequently asked questions
The list of frequently asked questions (FAQs) has been put together by the PRA to help insurance firms with questions they may have on the submission of Solvency II information.
Firms should note that the preparation of the Solvency II templates should follow the requirements of the Delegated Regulation (EU) 2015/35 and the Implementing Technical Standards, which are directly binding on firms. When this document is read it is recommended it is done so in conjunction with the EIOPA guidance. Any subsequent comment by EIOPA could supersede any answer provided by the PRA in this document.
Technical queries on the reporting material should be presented to EIOPA through relevant trade bodies or alternatively directly to EIOPA using the Q&A form.
To raise further questions with the PRA, firms can contact:
- their named supervisory contact
- the PRA Firm Enquiries Function at PRA.FirmEnquiries@bankofengland.co.uk or 020 3461 7000
- their relevant representative on the PRA regulatory reporting industry working group.
5. How to report: BEEDS
Firms will use the Bank of England Electronic Data Submission (BEEDS) portal to submit the required Solvency II regulatory returns.
Firms' CEOs will be asked to nominate a principal user who will be responsible for submitting their firm's Solvency II submissions via BEEDS. Principal users are provided with log in details for BEEDS, and additional users can then be set up. Materials are available below to help firms familiarise themselves with the BEEDS portal in time to make their submission by the relevant deadlines.
BEEDS tutorial 1: uploading a file
BEEDS tutorial 2: viewing validation errors
BEEDS tutorial 3: plausibility response
BEEDS tutorial 4: requesting a resubmission
BEEDS tutorial 5: ad hoc returns
BEEDS tutorial 6: forgotten password
BEEDS tutorial 7: creating/editing users
BEEDS portal user guide
BEEDS quick start guide