How to streamline liquidity reporting
Liquidity-related regulatory reporting requirements are expanding to address gaps revealed during periods of market stress.
The regulator's aim is to strengthen liquidity risk management of large life insurers by:
- Introducing granular reporting templates on cash-flow, facilities, and derivatives
- Allowing daily submissions in time of crisis
- Simplifying reporting for internal model firms
- Aiming to reinforce early warning systems and standardize oversight
Reports will need to be submitted quarterly and annually, with the regulator having the authority to request daily submissions in times of stress.
Granular and frequent reporting will allow the regulator to better supervise liquidity risk, perform peer comparisons, and potentially consider introducing minimum liquidity requirements.
Current systems are often not built to capture and report this level of detail, meaning system upgrades or new tools will be necessary. Controls will need to be redesigned to ensure and demonstrate data-quality.
Daily submissions during stress events will require automated processes, with appropriate resourcing in finance, treasury, actuarial, and risk teams.
Streamline liquidity reporting with CCH® Tagetik
CCH® Tagetik offers an out-of-the-box solution which eases the entire process from datacollection, review, calculation up until reporting of the numbers to the regulator.
In addition, the CCH® Tagetik intelligent platform allows insurance entities to run data-driven scenarios and stress tests and calculate minimum liquidity requirement.
Key benefits
- Guarantee to stay up-to-date with changes in regulations
- Improved audit-trail, faster data-collection and more reliable reporting
- Workflow features to support the reporting process
- Processing large (assets) volumes of data at short runtimes
- Simpler system architecture with less systems, tools and spreadsheets
- Flexibility to add insurance entity specific requirements
- Utilize CCH® Tagetik intelligent platform features to integrate liquidity reporting with other reporting into a single one-version-of-the-truth platform covering liquidity risk reporting requirements, IFRS, management reporting as well as planning and budgeting
How we can help
Our experts combine knowledge of the liquidity reporting requirements with technical capabilities of implementing CCH® Tagetik.
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