Wednesday, November 08, 2017 08.08AM / Mondovisione
(FI), Sweden's financial supervisory authority, has identified extensive
quality deficiencies in the reporting of insurance firms. These deficiencies
are a sign that the internal governance and control of many of the firms’
reporting procedures are unsatisfactory. Through this document, FI provides
guidance for insurance firms for how they can strengthen their reporting
reporting of insurance firms is stipulated by law and aims to provide FI
and other stakeholders with insight into the firms' operations. Poor
quality of the reported data is preventing FI from conducting effective
supervision and protecting policyholders. High-quality reporting is also
an issue that is being discussed at the EU level through the European
Insurance and Occupational Pensions Authority (EIOPA).
the past year, FI has carried out a number of activities to highlight the need
for the firms' reporting to meet a high level of quality. FI has had an ongoing
dialogue with the firms, held an FI Forum and sent a survey to a total of 146
would like to emphasise that the boards of directors are responsible for both
the reporting procedures and the reporting itself. It is crucial that boards of
directors emphasise for their organisations the importance of correct reporting
and compliance with governance documents and reporting procedures. FI would
also like to emphasise the importance of the boards allocating sufficient
resources to the reporting task.
order for the reporting to meet a high level of quality, it is necessary for
there to be policy documents in place that describe the reporting procedures
and responsibilities, and these documents also need to be applied in practice.
Insurance firms should define materiality for the various reports and data in
order to be able to design effective reporting procedures and avoid material
errors in the reported data.
believes that duality in the reporting procedures and traceability of data that
serves as a basis for the reporting are necessary components of a good internal
control environment. FI also believes this is an industry standard.
2017, insurance firms disclosed for the first time their solvency and
financial condition reports, which target external stakeholders such as
policyholders, re-insurers and analysts. Because the reports can serve as the
basis for many different business decisions, it is of particular importance
that these reports do not contain material errors.
the major deficiencies in the reporting and the importance of FI obtaining an
accurate overview of the insurance firms, reporting will continue to be a focus
area for FI.