Importance of Data Quality
Data quality is paramount in the management processes of insurance and reinsurance undertakings and institutions for occupational pension funds (IORPs) under the EU frameworks Solvency II and IORP II. The accurate data supplied is critical for national competent authorities (NCAs) and national central banks (NCBs) for correct supervision and statistical compilation.
Integrated Reporting Approach
NCBs and NCAs must have a unified understanding of data quality and revision needs. These new standards outline common minimum requirements for transmitting revisions to the European Insurance and Occupational Pensions Authority (EIOPA) and the European Central Bank (ECB). NCAs and NCBs need to ensure adherence to these standards at a national level.
Current Legal Framework
Existing legal frameworks under the ECB and EIOPA already stipulate the necessary conditions for insurance and pension fund data revisions. These include ECB Regulations ECB/2014/50 and ECB/2018/2, among others, which emphasize minimizing the industry’s reporting burdens while maintaining high data quality.
Handling Revisions
Revisions in reported data may result from internal checks by financial institutions or upon request from entities like EIOPA or the ECB. Revisions should address individual and aggregated data inaccuracies while communicating the reasons for significant changes.
Maintaining Data Consistency
Any data revisions must be implemented across the entire data transmission chain—from financial institutions to NCAs, NCBs, EIOPA, and the ECB—to ensure consistency. This synchronization ensures that all stakeholders access the same updated information.
Timeliness of Revisions
Revisions must be handled promptly, with routine corrections communicated within specific timeframes. NCAs should send revisions to EIOPA within one week of receipt, while NCBs must relay any updates to the ECB according to set guidelines.
Documentation and Historical Data
All significant and non-routine revisions should be documented with explanatory notes. Historical data revisions should be carried out as far back as possible. If infeasible, NCBs may use reclassification adjustments to reflect changes.
By following these common minimum standards, the EU aims to maintain high-quality and consistent data across the insurance and pension fund sectors, thus supporting accurate supervisory and statistical reporting.
