DataFlux, a leading provider of data management solutions, has announced that Allianz Global Corporate & Specialty (AGCS) has selected the DataFlux Data Management Platform to underpin compliance with the Solvency II Directive. The company is seeking to govern 110 separate data feeds, many of which are relevant for Solvency II risk modelling. Through a data management methodology combined with Six Sigma business process improvement strategies, AGCS is focused on identifying and correcting poor-quality or non-compliant data at the source.
DataFlux and its parent company SAS offer an end-to-end solution that helps insurance companies across Europe tackle Pillars 1, 2 and 3 of Solvency II compliance. To date, 37 of Europe’s leading insurers have selected DataFlux and SAS technology to address the requirements of the Solvency II Directive.
As part of its Solvency II initiative, AGCS formed a data governance team comprised of data management and IT experts that makes recommendations to a steering committee of senior management. The project recommendations are focused on establishing and maintaining data quality business rules to improve the quality of corporate data. This data governance approach is underpinned by DataFlux technology that provides rigorous monitoring of data quality metrics using a dashboard.
Using Six Sigma’s defects per million opportunities (DPMO) metric, the data governance team can now drill down to measure the impact of data quality business rules, which are designed and executed within the DataFlux Data Management Platform. These business rules are applied to each of AGCS’ 32 Solvency II data flows before the data enters the company’s risk capital model. This allows a high degree of accuracy, appropriateness and completeness of the company’s credit and market risk data, business risk data and insurance risk data.
Rolf Neuerburg, Data Governance manager, AGCS comments “We now have a process and organisational structure which means we can ask "how reliable is the data upon which we base our decisions?". The answers we receive are granular which allows us to demonstrate the impact data improvement projects will have, making it easier to gain sign off from senior management. We’ve made great progress so far with a 15% overall improvement in data quality. High-quality data and the ability to report on data quality over time underpins compliance with Solvency II, but we also believe it gives us greater operational efficiency and competitiveness. That’s why our data governance programme extends to all our data, not just that deemed applicable to Solvency II.”
Tony Fisher, president and ceo of DataFlux added “A trusted view of risk data is essential to managing complex capital adequacy requirements. Throughout our engagements with insurers we stress the need not just for the deployment of technology but also strategic revisions of business processes and a shift towards a culture of data governance. AGCS’ structured approach should be viewed as an example of industry best practice.”
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