Central Bank of Ireland Insurance National Specific Template Taxonomy. Presented By: Michael Healy, IT Project Manager; Barry Murray, Technical Lead

Transcription

1 Central Bank of Ireland Insurance National Specific Template Taxonomy Presented By: Michael Healy, IT Project Manager; Barry Murray, Technical Lead 02 June 2016

2 Solvency II Data Project - Background Mandatory collection of Solvency II (SII) Quantitative Reporting Templates (QRTs) returns in XBRL format from 200 undertakings First submission date end May 2016 Validate submissions against EIOPA SII taxonomy - Transfer to EIOPA Interface of SII data to internal supervisory and data analytical systems Collection of Irish National Specific Templates (NSTs) in XBRL format from all undertakings 2

3 Why National Specific Templates? Additional detail required by Insurance supervisory staff not in SII QRTs Significant variable annuity business in Ireland need further information Additional statistical information required on host basis (SII is home basis) NSTs to be collected for same reporting periods/submission dates as SII QRTs 3

4 Why XBRL for NSTs? Complexity of some NST templates eg: multiple Z-Axis s on NST04/06 difficult to collect this information in excel format Existing XBRL system architecture for CRDIV and Solvency Preparatory Potential to reuse this architecture for NST collections Standardise XBRL as the collection format for all quantitative data from the Irish Insurance industry 4

5 Approach to NST Taxonomy Decision made to extend the EIOPA SII taxonomy rather than create standalone taxonomy for the following reasons: Most of NSTs mirror existing SII templates A lot of data commonality Reuse existing EIOPA SII dimensions and metrics rather than define national specific ones Easier to implement extension for both Central Bank and undertakings Market very familiar with the existing DPM architecture 5

6 Approach to NST Taxonomy Gaps in national expertise for DPM modelling and taxonomy authoring Tendered for XBRL and DPM consultancy and training XBRL Consultancy BRAG selected Identified Subject Matter Experts (SMEs) for Data Point Modelling BRAG held training sessions Training with SMEs on DPM IT personnel on taxonomy authoring 6

7 NST Taxonomy Authoring Process National Specific Templates DPM Modelling and Taxonomy Authoring Process Subject Matter Experts Start Create NST Business templates & Logs DPM Training Update DPM Dictionary for NST specific items Create Annotated Templates Create List of validations Spreadsheet List of Validations Perform NST Data modelling Third Party Consultants Hold DPM Modelling & and Taxonomy authoring QA Data Modelling Outputs QA PWD Taxonomy QA Final Taxonomy Finish IT Taxonomy Training NST DPM Dictionary Annotated Templates DPM Architect Create PWD NST Taxonomy Create Final NST Taxonomy with validations Publish Final Taxonomy Consult with Industry Update & Republish Final Taxonomy Insurance Industry Provide Feedback on Taxonomy 7

8 NST Taxonomy Features 13 NST templates - 11 Insurance, 2 Statistical; 70 NST tables 15 new dimensions 475 additional domain members 237 additional metrics 3 modules - Quarterly, Half-yearly, Annual 9,000 NST datapoints (compared to the 27,000 in SII) NST06 - Multiple Z-Axis - multiple dimensions for currency, line of business, country several million possible data points 8

9 NST Naming Convention for Extension DPM Dictionary CBI Owners: iec, iehd, iemd Metric names: ie Domain Members Used Z instead of X Subdomains start with iec_1 Annotated Templates: CBI dimensions annotated with iec_ Business Rules IE added in front of business rules 9

10 DPM Modelling Annotated Templates 10

11 DPM Modelling Reuse Existing Domain 11

12 DPM Modelling Add NST Dimensions 12

13 DPM Modelling Add NST Domain Members 13

14 DPM Modelling Add NST Metrics 14

15 Location of NST taxonomy (CBI version 2.01_1.0.1) NST Published Documents 15

16 Tools Used in Taxonomy Authoring DPM Architect (with permission of Bank of Spain) used to create taxonomy extension Arelle to create initial test instances XBRL validation tool used to generate full test instances In-house regression tool used to test updates to the NST taxonomy 16

17 NST Taxonomy Timeline 17

18 Communication/Industry Support/ Testing Recognition that XBRL is a new submission format for Insurance industry for Solvency II and NST collections Communication and support strategy put in place for NSTs CBI encouraged undertakings to participate in a six-week test phase and submit test files Set up dedicated mailbox to handle NST XBRL (and SII) queries Industry reporting event with 340 representatives from industry/software suppliers 18

19 Key Challenges Short time to develop DPM model and taxonomy 4 months from start of process to final publication (further 5 months to collection) Gap in DPM modelling expertise in the organisation Limited tools on the market for extending taxonomies Some challenges when dealing with large amounts of data points on certain templates 19

20 Lessons Learned - Recommendations Large learning curve Develop and centralise data modelling expertise Must have business buy-in to have the domain expertise Avoid DPM modelling and taxonomy development/support as an IT function only Clear responsibilities to business and IT resources and stakeholders 20

21 Lessons Learned Recommendations Quality assurance of taxonomy from consultants to meet current XBRL standards etc Prior to template publication, business area should consult with IT simplify templates that are unnecessarily complex/difficult to model Long term support model must be in place for Further new changes Keep in line with EIOPA taxonomy (updates to DPM dictionary etc) Technical support and regular communication vital to successful adoption by industry 21

22 Implementation by Industry First quarterly submission date 26 th May 200 Insurance undertakings due to report NSTs As at 27 th May, 195 undertakings had reported successfully 98% submission rate Total NST files submitted (including resubmitted and rejected files : 443 Files rejected: 172: 39% File accepted: 271: 61% Some undertakings reported that the absence of T4U type tool caused them difficulties in generating NST XBRL files 22

23 What s Next/Future Enhancements Updates to taxonomy for changes to templates Potential updates to NST documentation to align with EIOPA taxonomy updates May automate the process for inclusion of new dimensions, metrics and validations into the NST taxonomy 23

24 Thank you for Listening! Questions? 24