Solvency II and XBRL: new rules and technologies in insurance supervision
| DOI | https://doi.org/10.1108/13581981011034005 |
| Published date | 11 May 2010 |
| Pages | 144-157 |
| Date | 11 May 2010 |
| Author | Enrique Bonsón,Virginia Cortijo,Tomas Escobar,Francisco Flores,Sergio Monreal |
| Subject Matter | Accounting & finance |
REGULAR PAPERS
Solvency II and XBRL: new rules
and technologies in insurance
supervision
Enrique Bonso
´n, Virginia Cortijo, Tomas Escobar and
Francisco Flores
University of Huelva, Huelva, Spain, and
Sergio Monreal
Technologies and Process Department, Mapfre, Madrid, Spain
Abstract
Purpose – The purpose of this paper is to analyse the way in which the insurance industry is facing
the renewal of its regulatory framework with respect to the levels of solvency that insurance entities
should maintain. This paper also addresses how technological initiatives in general, and the eXtensible
Business Reporting Language (XBRL), in particular, are making a key contribution to the process of
adaptation to the new regulation.
Design/methodology/approach – The paper analyses the particular advantages that the
application of the XBRL standard can offer in this process, and highlight new lines for further research.
Findings – After analysing the current situation of the insurance industry, the paper concludes that
technological systems, such as XBRL, are necessary to support the consolidation of financial
information, and to ensure the digital transparency of the insurer organisations that are engaged in
this new regulatory challenge.
Practical implications – XBRL is a key resource in the European Common Reporting Project
whose objective is the implementation of Basel II in the European Union. The implementation of
Solvency II can benefit from this previous experience. Therefore, it suggest a proposal for action.
Originality/value – The affiliation of the authors to the insurance sector, the academia and the
XBRL community contributes to create a complete view of the possibilities of this breaking project.
Keywords Insurance companies,Regulation, Communicationtechnologies
Paper type Viewpoint
1. Introduction
New regulatory frameworks have the capacity to drive or demand innovation in
organisations (Lin and Wu, 2007) and governments and regulatory agencies play a
key role in the process of application and acceptance of new rules and technologies
(Hsu et al., 2006). The European Union (EU) continues its steady advance towards
the harmonization of the financial system, promoting the collaboration between
supervisory authorities (Vives, 2001). In the field of banking supervision, the directives
about the minimum solvency requirements for financial entities have recently been
reformulated. This is a consequence of the transposition of the Basel standards, Basel II
in particular, to the European system of juridical governance. The use of the “new
technologies” has been fundamental in this process of change.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1358-1988.htm
JFRC
18,2
144
Journal of Financial Regulation and
Compliance
Vol. 18 No. 2, 2010
pp. 144-157
qEmerald Group Publishing Limited
1358-1988
DOI 10.1108/13581981011034005
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