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Solvency II and XBRL: new rules and technologies in insurance supervision

Author

Listed:
  • Enrique Bonsón
  • Virginia Cortijo
  • Tomas Escobar
  • Francisco Flores
  • Sergio Monreal

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.

Suggested Citation

  • Enrique Bonsón & Virginia Cortijo & Tomas Escobar & Francisco Flores & Sergio Monreal, 2010. "Solvency II and XBRL: new rules and technologies in insurance supervision," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 18(2), pages 144-157, May.
    • Handle: RePEc:eme:jfrcpp:v:18:y:2010:i:2:p:144-157
    DOI: 10.1108/13581981011034005
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    References listed on IDEAS

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    1. Xavier Vives, 2001. "Restructuring Financial Regulation in the European Monetary Union," Journal of Financial Services Research, Springer;Western Finance Association, vol. 19(1), pages 57-82, February.
    2. Williams, Susan P. & Scifleet, Paul A. & Hardy, Catherine A., 2006. "Online business reporting: An information management perspective," International Journal of Information Management, Elsevier, vol. 26(2), pages 91-101.
    3. P. Karuppuswamy & G. Sundararaj & D. Elangovan, 2007. "Application of computerised maintenance management system coupled with risk management techniques for performance improvement of manufacturing systems," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 9(1), pages 7-21.
    4. Andrew Davenport & Kathleen McDill, 2006. "The Depositor Behind the Discipline: A Micro-Level Case Study of Hamilton Bank," Journal of Financial Services Research, Springer;Western Finance Association, vol. 30(1), pages 93-109, August.
    5. Joanne Locke & Alan Lowe, 2007. "XBRL: An (Open) Source of Enlightenment or Disillusion?," European Accounting Review, Taylor & Francis Journals, vol. 16(3), pages 585-623.
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    Cited by:

    1. Laura Grassi & Davide Lanfranchi, 2022. "RegTech in public and private sectors: the nexus between data, technology and regulation," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(3), pages 441-479, September.
    2. Nadine Gatzert & Dinah Heidinger, 2020. "An Empirical Analysis of Market Reactions to the First Solvency and Financial Condition Reports in the European Insurance Industry," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 87(2), pages 407-436, June.
    3. André Gräning & Carsten Felden & Maciej Piechocki, 2011. "Status Quo and Potential of XBRL for Business and Information Systems Engineering," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 3(4), pages 231-239, August.
    4. Valentinetti, Diego & Rea, Michele A., 2012. "IFRS Taxonomy and financial reporting practices: The case of Italian listed companies," International Journal of Accounting Information Systems, Elsevier, vol. 13(2), pages 163-180.

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