In May 2013, the Prudential Regulation Authority (PRA) sent targeted data collection requests to all internal model approval process firms. The PRA has now published feedback on its webpage on the data collection exercises, which covers:
• comparison of individual capital assessment, standard formula solvency capital requirement (SCR), and internal model SCR – the quality of data was generally considered good;
• standardised risk information – the quality of data varied between life and general insurers where incomplete submissions and submissions with obvious errors were common;
• the credit benchmark portfolio survey – no comment on data quality; and
• the stochastic simulations survey – no comment on data quality.
The PRA intends to repeat the data request to internal model firms in the second quarter of 2014. It encourages firms to respond positively to future data requests, use the comments and feedback to improve the quality of data and improve their assessment
of insurance risk. In addition, life insurers should specifically prepare for ring-fenced fund reporting in Solvency II.