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Oracle Insurance Quantitative Management and Reporting for

1. dard SCR 5 21 Equity risk Equity risk related to point i paragraph 1 Art 304 22 00 22 Equity risk for strategic participations global Level 1 Mitigation Gross Ss Level 2 Level 3 51 Oracle Insurance Guantitative Management and Reporting for Hyperion Financial Management Guide SCR Strategic participations other equity category 22 0096 2296 Global equity bucket 30 0096 3096 Other equity bucket 40 0096 4096 Property risk instantaneou s decrease of 25 00 25 Currency risk Standard currency shock 25 00 25 0 Danish krone 2 25 2 25 Estonian kroon against Lithuanian litas 0 00 0 00 latvian lats 1 00 1 00 latvian lats against danish krone 3 50 3 50 Spread risk widening of credit spreads for bonds rated AAA 0 900 0 9 rated AA 1 100 1 1 52 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Appendix E Functions of SCR EXAMPLES OF USER DEFINED ATTRIBUTES IN SCR CALCULATIONS Account Desc UDF1 UDF2 Excel Expl L 1052 1 Diversificationeffects Dif L 1051 L 1053 1 nSCRmkt F295 Difference between sum of risks and diverified risk L 1075 Adj for loss absorbing if L 1076 L 1077 IF ISBLANK F85 0 effect of technical MIN F61 F85 F86 provisions anddeftax L 0361 Interestraterisk maxi base G311 U
2. Quick Reference Guide Working Instructions for Data Entry Quick Reference Guide Appendix A Glossary 35 35 General Terms Technical Terms Appendix B Forms and Tables Appendix C Correlation Tables 43 44 Correlation Tables Codes to be Entered for Participations ii Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Contents Appendix D SCR 48 Instruction on Filling out the SCR Main Sheet 49 QIS5 SCR sheet 49 Scenario selection groups or ring fenced funds 50 Capital Requirement and Basic Solvency Capital Requirement Under the Standard Formula Appendix E Functions of SCR 53 Examples of User defined Attributes in SCR Calculations Appendix F Examples Appendix G Reports 59 List of Reports Appendix H Rules Appendix I Technical Information 66 68 71 73 74 Operating Systems Database Technology Application Support Remote Access Solution Citrix etc Application content Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide iii Contents iv Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Preface This Preface contains information about this documentation Audience Purpose This Admin and User Guide is designed for those users within an insurer who will access the Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Ma
3. Year 2009 Period Dec Entity GSIOD091 GSIO0012 Value Entity Currency Actual 2009 Dec NN Non Life IFRS SI Sil Tier 1 Tier 2 Tier 3 Paid up 4 E 1 Called up I NN share al of own share 1 i 1 1 Paid up Called up Callable The initial fund less item of the same 4 1 d 4 Share premium account Retained eamings including profits from Other reserves from accounting balance s Adjustments to assets Adjustments to technical provisions 61 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Reports 62 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Section Sub Dynamic Sub Translate Appendix H Rules Brief Description of use and purpose of each section in the rule file Purpose This is not currently used This is a standard HFM routine which is used for accounts that are dynamically calculated at view time The limitation is that dynamic accounts cannot be fed from other dynamic accounts and for this reason they cannot be used in the QIS5 implementation This is a standard HFM routine which is called when a user performs a consolidation which involve currency conversion on entity to its parent or if the user presses Translate in a data form or data grid It relies on the HFM Entities being tagged with the correct currency and the correct rates to be loaded for each scenario year period Sub
4. gt Interest rate risk Downward Market risk gt gt Spread risk gt gt structured Direct Market risk gt gt Spread risk gt gt credit derivatives Downward Life underwriting risk gt gt Lapse risk Increase Used Downward Direct Downward Increase 49 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide SCR Health underwriting risk gt gt Disability Morbidity gt gt Medical MR inte i Downward expense Health underwriting risk gt gt Lapse risk CAPITAL REQUIREMENT AND BASIC SOLVENCY CAPITAL REQUIREMENT UNDER THE STANDARD FORMULA 1 Solvency Capital Requirement and Basic Solvency Capital Requirement under the standard formula Back to top Solvency Capital Requirement Adjustment based on Basic Solvency Capital Requirement Diversified risk Equivalent scenario Diversification effects Risk Applicable Sum of risk components Market risk TRUE Counte default risk TRUE Life Underwriting risks TRUE Health underwriting risk TRUE Non Life underwriting risk TRUE Notes Risk appl 1 for true e Weighting and div factor are calculated Initial net asset value Assets Liabilities Net asset value after upward shock gross Assets Liabilities Net asset value after downward shock gross Assets Liabilities
5. of revenues 0302 Group coverage Part 2 of tab group coverage please fill out by legal entity and country 0401 Borrowings by national Please fill out resort to original EIOPA countries and then other countries of the world government 0402 Total Exposure Total exposure per country 0403 Exposure ECB Total exposure split by exposure in currency of issuer and other currencies 0404 Currency risk exposure Complete by Nation Currency Structures outlined by EIOPA 0405 Information on spreads Complete by Instrument categories Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 39 Forms and Tables Form ID Form Description Remarks 0406 Information on assets Add Asset details by category and column e g current accounting bases SI SII and Reconciliation 0407 Information on counterparties Add the Sum loss given at default by instrument for Type 1 exposures 0408 Information on counterparties2 Add the Sum loss given default for Type 1 exposures 0409 Additional mortgage Add mortgages details split Commercial Residential 0501 Participations Fill the participations the code for the classification it belongs to See section Codes to be entered for participations 0601 Own funds details Add total and splits by Tier1 Tier 2 and Tier3 0701 Current solvency position Input Solvency margin with associated split Life Non Life 0702 D
6. 18 pull through 18 validation 23 S scenarios adding 28 selection groups or ring fenced funds 49 SCR calculations examples of user defined at tributes in 53 filling out the main sheet 48 group calculation 32 hierarchies in custom2 27 INDEX Rules 18 security general 69 users and processes 32 server specifications 68 minimum and preferred 66 specifications client 68 Structure custom 2 25 custom 3 27 custom 1 25 organisational 10 T tables correlation 43 terms general 35 technical 35 U UDAs 24 V VAL PVA 12 value gross 48 initial 48 net 48 WwW workspace filling out forms 31
7. 4 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Chapter 2 Installing QMR The following topics deal with installing the Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management system e Prerequisites on page 6 e Installation Guidelines on page 7 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 5 Installing QMR PREREQUISITES The following are pre requisites for the QMR application e HFM version 9 or 11 installed e Weblogic HSS WS Web and Agent FR Web and Services HFM Web IIS and Application Server MSAD account and Database 9x Admin and access rights to application e A fully trained administrator Also deployment remote access needs to be completed to allow remote access to the application Excel QIS5 template would stand alone Version 11 also supports web data entry using Excel add in smart view Tip Refer to Remote Access Solution Citrix etc on page 73 6 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Installation Guidelines INSTALLATION GUIDELINES OVERVIEW The QMR application is not like software that can be installed with an installation routine It s more like a pre packaged base application that needs more work at the client when received by e Adding the own entity structures to the application e Adding securit
8. Calculate This is the main calculate routine that is called by HFM for each data unit meaning each combination of Entity Period Year Value Note that most of the calculations are only performed when Value Entity Currency The Calculate routine calls the following sheet specific calculations Sub InsObligations Sub Premiums Sub ReverseSl Sub ValuationSheet Sub CurrentSituation Calc for current situation tab Sub Geographical Geo Sub MCRSheet Calc for MCR tab Sub SCRSheet Calc for SCR tab Sub SCR VolMeasures Calc for volume measeure tab SCR Sub Validations Section Sub Nolnput This calculates the validation accounts The resulting validation account controls whether a user can submit the data or not in process management No input Rules Purpose This is used to block input on certain cells By default any total lines are automatically read only However there are some cells which for some rows are inputable but certain columns are not inputable The Nolnput routine blocks input on such cells where they are calculated by other means and you do not want the user to overtype the number The Nolnput routine calls the following sheet specific routines Sub InsOb_Nolnput NOINP for insurance obligations tab sub CurrSitu_Nolnput NOINP for Current situation tab 63 Oracle Insurance Ouantitative Management and Reporti
9. CorrNL Matrix MX CorrNLCat Matrix MX CorrNLCat1 Matrix MX CorrNLperils Matrix MX CorrNSLTHealth Matrix MX CorrSCR Matrix MX CorrSLTHealth Matrix OwnFundsSource Pr Non Prop Tot Prod roll up Pr TOP Prod roll up Pr Tot Life Prod roll up Pr Tot NonLifelncH Prod roll up Pr TotHealthNonLife Product roll up ProvisionRollup current position SCR MX Equity Matrix SCR MX Market Matrix SI to SII 1 to S2 reconciliation Spread Agg Assets TotalCustom2 Total custom 2 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Application content WorldCurrencies World currencies Instruction on Excel Own funds G 01 Guarantees G TiersMeasure TotalCustom3 current situation L 0058 Unitlinked TechProvisions ProvisionRollup current situation L 0089 Technicalprovisions TechProvisions ProvisionRollup premiums L 01831 Premiums breakdown PremDiversification Pr_TOP including proportional acceptations geo div L_0166 WorldWide Total PremDiversification Pr_Tot_NonLifelncH ins obl L 0195 Allocation of health current AllocHealth Pr TotHealthNonLife basis to the QIS5 segmentation ins obl L 0214 Non Lifelnsuranceobligations InsuranceObligBE Pr Tot NonLifelncH MCR L 0252 C 2 1 technical provisions for MCR calc MCR InsObligations contracts withoutguarantees RFF L 0342 RingFencedFunds RingFencedFunds Assets L 0377 Borrowings by or d
10. Risk applicable flag yes 1 Risk appl INSTRUCTION ON FILLING OUT THE SCR MAIN SHEET Initial value Initial value assets e Initial value liability e Initial value NAV Gross Value e Asset e Liability Net Net value e Asset e Liability Net Mitigation Gross How to enter the flag overrides in the SCR sheet e Available flag e Calculated flag input e Forced shock flag e Risk applicable flag e Simplification flag Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide e Special flags indicators Calculated fields Eq scenarios Equivalent scenario These can be found in the data form SCQ Equiv QIS5 SCR SHEET SCR QIS5 standard formula components d 1 SCR and BSCR SCR BSCR 2 Loss absorbing capacity of technical provi sions and deferred taxes Technical provisions under equivalent sce nario Deferred taxes under equivalent scenario Notes Available Calculated Standard model Standard model Standard model Standard model Standard model Standard model e Please refer to the QIS5 SCR sheet and in HFM the form SCRMain e Available is automatically calculated based on input e Calculated must be selected in form by entering 1 in the appropriate column SCENARIO SELECTION GROUPS OR RING FENCED FUNDS Scenario selection groups or ring fenced funds Calculated Market risk gt
11. The QIS5 HFM application comes with an Excel based converter tool that reads the DataSet sheet from an existing QIS5 Excel workbook This tool is called QIS5 DataSetMapping xls 1 You must enable macros to run this converter utility 2 Press the button Convert a OIS5 workbook It will write an HFM dat file with the equivalent data The tool works on one file at a time It will prompt you to select the original QIS5 workbook with the data you want to convert then it will produce a dat file with the same name with a dat extension 3 After this is created login to the HFM application and under Tasks gt Load Tasks gt Load data select the dat file that was created from the conversion tool 4 Ensure you run Calculate from within HFM after loading data for any particular entity Rationale Uploading a spreadsheet into HFM for multiple entities can best be supported by a single upload spreadsheet that runs through submitted QIS5 templates and uploads data from the submitted sheets into the HFM database 30 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide FORMS AND REPORTS 31 Forms and Reports WORKSPACE NAVIGATION FILLING OUT FORMS Tip Refer to Forms and Tables on page 39 The links between the worksheets in the Excel template and the data forms has been stated below Some tabs have been subdivided into more individual sub forms sequence number 02 03 etc
12. The tabs O and G have been incorporated as report P articipant 0101 0102 Group coverage 0301 0302 Valuation 0201 0202 0203 0204 0205 0206 0207 0207 IC 0208Liab 0208 IC Assets 0401 0402 0403 0404 0405 0406 0407 0408 0409 P articipations 0501 Own Funds item s details 0601 C urrent situation 0701 0702 Premiums 0801 0802 0803 Geographical 1001 QIS5 insurance 0901 0902 0903 0904 0905 0906 SCR SCREquiv SCRMain SCR Switches RFF MCR 1301 1302 1303 1304 1305 I SCR Adjusted SC REguiv SCRMain G Group OFS G GroupN CP IM Intern al Model Results 1701 1702 1703 1704 1705 1706 1707 IM Internal Model Parameters no data form required IM blank sheet results 1901 1902 1903 IM blank sheet parameters no data form required O Overvi ew no data form reguired IG Group overview no data form required G Group details on aggregation RUNNING REPORTS Oracle s Hyperion Financial Reporting is an automated web enabled reporting solution for analytic applications that transforms data into meaningful business information and empowers users to make critical time sensitive business decisions Users can quickly create reports without IT assistance and deliver them immediately or schedule them for later delivery through a variety of channels no dala DIT TEG eu GE AND fB FFF e TWE FU anaes The following reports are included These are run from Explorer within Hyperion Work
13. account SCRCols10 Tech SCR account SCRCols11 Tech SCR account 76 Oracle Insurance Ouantitative Management and Reporting for Hyperion Financial Management Guide 77 Application content SCRCols12 Tech SCR account SCRCols13 Tech SCR account SCRCols14 Tech SCR account SCRCols15 Tech SCR account SCRCols16 Tech SCR account SCRCols17 Tech SCR account SCRCols19 Tech SCR account SCRCols22 Tech SCR account SCRCols23 Tech SCR account SCRCols24 Tech SCR account SCRCols25 Tech SCR account SCRCols26 Tech SCR account SCRCols27 Tech SCR account SCREquiv000100 Tech SCR account SCREquiv000110 Tech SCR account SCREquiv001100 Tech SCR account SCREquiv001110 Tech SCR account SCREquiv001111 Tech SCR account SCREquiv101100 Tech SCR account SCREquiv101110 Tech SCR account SCREquiv111100 Tech SCR account SCREquiv111110 Tech SCR account SCREquiv111111 Tech SCR account TechProvisions Current situation Tiers Valuation TiersMeasure Valuation TotalCustom1 Total of custom 1 ValMethods Valuation Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 78 Custom 2 CorrNature IMspec Internal model MCR MCR MCR_InsObligations MCR MX_CorrCATHealth Matrix MX_CorrDef Matrix MX_CorrHealth Matrix MX_Corrlndex Matrix MX CorrLife Matrix MX CorrLob Matrix MX CorrMkt Matrix MX
14. arranged in hierarchies Upper level members are called parent members and a member immediately below a parent member is referred to as the child of a parent member All members below a parent are referred to as descendants The bottom level members of the hierarchy are called base level members During the analysis of the QIS5 requirements logical data elements breakdowns have been identified On translating these logical data elements to the available dimensions in HFM the following general starting points have been applied e In deciding whether breakdowns that are not covered by a system defined dimension should either be included in a custom dimension or in the Account dimension the following general principles apply a In those cases where a certain breakdown is valid for more than one account or if it is expected that the number of accounts that will be used in 23 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Rules combination with the breakdown is expanded this breakdown ideally should be included in a custom dimension b In those cases where a breakdown is used only for one account then this split has been included in the account dimension itself instead of adding it to a custom dimension unless it is expected that in future this breakdown will be used in combination with other accounts The QIS5 spreadsheet contains worksheets with matrices of data rolling up into a
15. custom3 member corporate correction 4 Data entry or journal on corporate entity if the entity structure contains an adjustment entity RUNNING A CONSOLIDATION GROUP SCR CALCULATION Consolidations are performed using the standard consolidation features of HFM client or web version A standard consolidation grid is part of the application Tip Refer to HFM admin guide chapter 6 SECURITY USERS AND PROCESSES Note Security policies are client specific 32 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Forms and Reports QMR BASELINE SECURITY AND ROLES e Standard roles e Standard security settings Standard sign off processes Tip Refer to the security admin guide 1 Data entry access to forms submit data 2 Local sign off read access to all and approval 3 Corp consolidate unlock lock sign off reject consolidate enter corp corrections upload Excel download Excel template 4 Corp admin modify reports forms etc System admin all MULTI LANGUAGE The QIS5 application can be used with the 6 language packs from CEIOPS In order to be able to use the additional languages these languages have to be added in the Application profile Important We will only translate what we have from the language packs some information is not translated yet but the majority of the accounts are Tip Refer to HFM admin guide
16. for Hyperion Financial Management Guide Chapter 1 Introduction This chapter introduces the Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management system Related topics e OMR Overview on page 2 e HFM Overview on page 3 e Rules on page 19 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 1 Introduction QMR OvERVIEW Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management QMR is a dedicated financial reporting and consolidation application that operates on the Hyperion Financial Management HFM platform It provides the capability for users across the organisation to enter risk actuarial and capital data via a web data capture screen and submit to Corporate who can then review consolidate and aggregate Most insurers currently undertake this exercise by using a series of Microsoft Excel spreadsheets based on the EIOPA template Doing so is both time consuming and potentially error prone as well as a breach of Pillar II governance requirements OMR provides a repeatable and auditable process for OIS5 generation It can also be customised to clients specific requirements and future regulatory changes from both EIOPA and local regulators Whilst the QMR application fulfils the current requirement for OIS5 generation it can also support the Quantitative Reporting Template QRT process the quarterly Solven
17. list Member Selector POV Actual 2008 Jan Scenario View one Entity Currency None ICP None None None None 4 None Selected Custom3 Value None Note When viewing data with Custom3 Total to see combined numbers including adjustments you will see everything as read only If you want to write to the cells then you must select either Custom3 None for original data or Custom3 Adjust if you want to enter adjustments Rationale We have decided to use a custom3 to support correction from a higher level in the reporting hierarchy In case you would decide to use for example entity structure to support adjustments please set up structures accordingly SCENARIOS Adding scenarios For an Admin user this should be clear e Application supports actual reporting for monthly actual QIS5 reporting from 2010 onwards Admin can add scenarios for example for forecasting Tip Refer to HFM admin guide chapter 4 Defining Custom Members Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 29 Rules ETL Interfacing with existing applications data gt is client specific an in our opinion not part of the application Client is advised to use this feature when IFRS Current accounting standard data is already available also to populate S1 reporting data If these data are uploaded and the customer does not want the users to change the data t
18. model information 0201 Balance Sheet Assets f 0102 Contact information i Reporting reference year 0202 Balance Sheet Liabilities Year end used adjust if not december 31 of 2009 9 0203 Basic own funds items Reporting currency used f 0204 Own funds trans meas Reporting unit used f 0205 Adjustments basic own fun pouty FEAS 7 0206 Valuation methods Local reg rstionmumiber f 0207 IC Intragroup assets detail Participant is part of a group 0208 Intragroup assets If yes group name Et 0208 Intragroup liabilities If yes group s proportional share Ue AD nies eos ONT A 0208_IC Intragroup liabilities det i 0301 Group coverage hd 4 Forms Selection Estan mm A som O D e oo a Oracle Hyperion Financi 7 Process Control J amp Oracle Enterprise P _ 7 Z Documents S Microsoft Excel Copy o E Microsoft PowerPoint L Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 55 Examples Figure 2 Current Acc IFRS 81 S2 Recl Validation must be 0 gt Oracle Enterprise Performance Management System Workspace Fu n Edition Windows internet Explorer S oracle Enterprise Peformance Management System w ORACLE Enterprise Performance Management System W xkspace Fusion Edition NEN File Browser View f
19. 100 will be shown automatically by the roll up hierarchy From SI to SII Both the Solvency I and QIS5 balance sheet are input as separate balance sheets with an explanation of the differences If the difference explanation is not equal to the delta between the QIS5 and the SI value this difference will be stored on a separate member in the Custom2 dimension SI to SII AbsDiff The absolute difference per account will be aggregated and stored on a validation account Rationale We use Custom 2 dimension to support S1 to S2 reconciliation As we also use Custom 1 for account analysis we have introduced Custom 2 for additional account analysis Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 15 Technical Admin Description of Application Flags Flag accounts have been set up in HFM to support pull down selections from the QIS5 template Users are advised to enter 1 in the appropriate cell reflecting a Yes and a empty value in other words nothing reflecting a No Note 1 represents a Yes and empty represents a No Rationale As HFM does not support drop down menus with text to support Y N we selected a 1 0 approach to simulate a selection box Non financial data cell text For qualitative information such as contact information accounts have been created that will be filled with cell text In the upload spreadsheet and in the data forms the cell text
20. 201 Balance Sheet Assets t 0202 Balance Sheet Liabilities Ef 0203 Basic own funds items f 0204 Own funds trans meas Et 0205 Adjustments basic own fun Ef 0206 Valuation methods 0207 IC Intragroup assets detai t 0208 Intragroup liabilities 9f 0208_I Intragroup liabilities det E 0301 Group coverage Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Link ES scenario Actual Year 2008 5 Period Jan PA view lt Scenario Views 0208 Intragroup assets Intragroup assets Currency EUR a Entity East Europe LE1 y r Value Entity Currency ICP ICP Top 4 Customt None 4 Custom3 None Custom4 None Goodwill IC TP calculated as a whole Best estimate Ri Best Estimate IC Risk margin IC Gross technical provisions health similar to Gross technical provisions health similar to TP calculated as a whole Best estimate Best Estimate IC Risk margin IC Gross technical provisions ife excl health TP calculated as a whole Best estimate Ri Best Estimate IC d Risk margin IC Gross technical provisions urit inked funds TP calculated as a whole Best estimate Ri Best Estimate IC Risk margin IC a inan ei a Reclass Increase Decrease SI to SII Figure 4 Input Mitigation
21. 9 OwnFunds detail TiersMeasure OwnFundsSource SCR L_1128 CAt CorrNature TotalCustom2 L 9942 Totalpreferenceshares TiersMeasure assets LC 01 Letterof Credit LC TiersMeasure MCRAbsFloor MCRAbsFloor TotalCustom1 TotalCustom2 MCRCap MCRCap TotalCustom1 TotalCustom2 MCRFloor MCRFloor TotalCustom1 TotalCustom2 Corr matrix MX_CorrCATHealth MX_CorrCATHealth MX_CorrCATHealth MX_CorrCATHealth MX_CorrDef MX_CorrHealth MX_CorrDef MX_CorrHealth MX_CorrDef MX_CorrHealth MX_CorrDef MX_CorrHealth MX_Corrlndex MX_Corrlndex MX_Corrlndex MX_Corrlndex MX CorrLife MX_CortLife MX CorrLife MX CorrLife MX CorrLob MX CorrLob MX CorrLob MX CorrLob MX CorrMkt MX CorrMkt MX CorrMkt MX CorrMkt MX CorrNL MX CorrNL MX CorrNL MX CorrNL MX CorrNLCat MX CorrNLCat MX CorrNLCat MX CorrNLCat MX CorrNLCat MX CorrNLperils MX CorrNLCat1 MX CorrNLperils MX CorrNLCat1 MX CorrNLperils MX CorrNLCat MX CorrNLperils 80 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide MX CorrNSLTHealth MX CorrSCR MX CorrNSLTHealth MX CorrSCR MX CorrNSLTHealth MX CorrSCR MX CorrNSLTHealth MX CorrSCR MX CorrSLTHealth MX CorrSLTHealth MX CorrSLTHealth Application content MX CorrSLTHealth MX Eq SCR Equity Matrix SCR MX Equity SCR MX Equity MX Mark SCRMarket Matrix SCR MX Market SCR MX Market valuation PSC 01 Und
22. Account Capital requirement Initial Value Gross Asset Value Flag Gros factors Net Asset Value Flag Net factors Gross Ris Gross Risk Gross Risk Gross RIS Gross Capital Net Capital Gross Risk Absom Gross Risk Absorp Absorp Absorp Div Net Risk Absopet Risk Absop let Risk Absop Net Risk Absap et Risk Absap Net Risk Absop Requirement Requirement nitial Liabiities Initial NAV_ hbsorp Assets Liabilities _ Absorp NAV Simplification _ Weighting Factor Assets abilities AV simplification weighting jiv Factor 1051 Diversified ris p E 1052 1 Diversification fects 1053 1 Sumofrisk omponents 1057 1 Market risk 1290 Market risk for related indertakings excluded from froup supervision net 1165 Diversified market risk omponents 11052 2 Diversification fects 110532 SumoTris weil f 0361 Interest rate risk J iod rss pee uM 2l 1 shock lnsrmwm point i raph 1 Art 304 1182 Egulty risk non related o point i paragraph 1 Art 304 1164 Diversified gross egu sk global and other buckets 1052 3 Diversification les 0 m iz mon 7 Lum L 1 SEEC Euro 263 1 Panicpatonh financial and credit institutions 1505 1 Strategic barticipations global cat 1567 1 Strategie participations other equity ategory Sisa Vale afer a shockon blobal gross of TP mitigation 1565 Strategic part
23. Net asset value after upward shock net Assets Liabilities Net asset value after downward shock net Assets Liabilities Please refer to form SCR MAIN e Please enter asset data in column e Please enter liabilities 50 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide e Please enter initial value in Simplification Mortality risk gross M JE Simplification Mortality risk net s 2 Initial net asset value Simplification Assets Liabilities Net asset value after shock gross Assets Liabilities Net asset value after shock net Assets Liabilities Please enter for simplification 1 in form representing true or nothing empty for False risk Capital requirement for Health CAT Diversification effects Sum of risk components Weightin Arena disaster net of mitigation Concentration scenario net of mitigation Determination of the equivalent scenario parameters gross Parameters Market risk Participation in financial and credit institutions Participation in related undertakings Pandemic scenario net of risk mitigation e Enter data in mitigation and gross Diversif ication reducti on factor gross Overall To use Standard 100 00 Market risk for other assets and liabilities Interest rate risk factor to apply to standard stresses 100 stan
24. ORACLE INSURANCE Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Admin and User Guide version 1 0 0 Part number E23019 01 May 2011 ORACLE Copyright Copyright 2011 Oracle and or its affiliates All rights reserved Primary Author Ken Weinberg This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protected by intellectual property laws Except as expressly permitted in your license agreement or allowed by law you may not use copy reproduce translate broadcast modify license transmit distribute exhibit perform publish or display any part in any form or by any means Reverse engineering disassembly or decompilation of this software unless required by law for interoperability is prohibited The information contained herein is subject to change without notice and is not warranted to be error free If you find any errors please report them to us in writing If this software or related documentation is delivered to the U S Government or anyone licensing it on behalf of the U S Government the following notice is applicable U S GOVERNMENT RIGHTS Programs software databases and related documentation and technical data delivered to U S Government customers are commercial computer software or commercial technical data pursuant to the applicable Federal Acquisition Regulation an
25. S Taskiists 0202 Balance Sheet Libiities 7 0203 Basic own funds items f 0204 Own funds trans meas 7 0205 Adjustments basic own fun l E 0206 Valuation methods f 0207 IC Intragroup assets detai ET 0208 Intragroup assets ET 0209 Intragroup liabilities Ef 0208 IC Intragroup liabilities det E 0301 Group coverage T ES scenario Actual E Year 2008 V Period Jan gt View 0201 Balance Sheet Assets Balance Sheet Assets Currency EUR cenario View gt ft Entity Ea rope LE1 ValYe Entity Currency FF ICP ICP None Custom1 None yf Custom3 None admin i Help Lc Custom amp None Goodwill Other intangible assets Reclass Increase Decrease SI to SII PPEheld for own use E Property other than own use Part rticipations Equities other shares listed Equities other shares unlisted Bonds Government Bonds Corporate Sec Bonds Corporate other Structured notes Investment funds Derivatives Long term bank k deposits Figure 3 56 Oracle Enterprise Performance Management System Workspace Fusion Edition Windows Internet Explorer Browser View QB Taskists I8 Reporting Binks OF Custom Documents Ef Related Content 1 8 Tasks Favorites Ef 0101 Participant information B 0102 Contact information Ef 0
26. a central server while simply displaying it on their personal computers From an end user s perspective the applications respond just as quickly as if the user was directly connected to the corporate local area network LAN From an IT management perspective the application can be rolled out in a distributed manner with all the benefits of a web application Oracle s Hyperion EPM System does not require Citrix for a successful deployment Some organisations especially those with complex or constrained distributed network environments choose to use Citrix to deploy System Those organisations that are heavily dependent upon Smart View across the enterprise may also decide to use Citrix to deploy their Oracle Hyperion Applications especially if retrieving large spreadsheets full of data Oracle will support customers who run Oracle s Hyperion products on the platform software specified in the Platform Software Support Matrix Oracle will support Oracle s Hyperion products on Citrix consistent with compatibility assertions provided by Citrix While Oracle s Hyperion products are expected to perform properly in a Citrix environment each situation is unique and may impact performance invalidating Oracle s typical sizing requirements and recommendations Proper analysis should be performed when using Oracle products in a Citrix environment to minimize resource contention and other aspects which may significantly impact overall performance Please be
27. acle Internet Directory 11 1 1 2 e Oracle Virtual Directory 11 1 1 2 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Application Support APPLICATION SUPPORT Oracle s Hyperion EPM System is designed to be maintained by your finance professionals Once the application environment has been fully implemented there will be several key areas that will require staffing in order to operate and maintain the system a Basic System Administration This function involves updating structures business rules valid elements accounts products responsibilities etc as they are changed in the normal course of business Depending on the level of change required it is typical that this task takes approximately 20 3096 of one person from Finance Business resource s time b User Administration This includes maintaining valid user lists system security and network security For the purposes of this estimate it is assumed that network security would already be established and not be incrementally affected by the application To maintain valid users and system security depending on the amount of personnel turnover is typically part of the system administration function and takes approximately 596 of a Finance Business resource c Data Processing This involves monitoring the data submission process and being responsible for all current and historical data within the application This is ty
28. active equity Marked Description of participations Code valuation markets method to model All participations 0 0 44 lt name participation gt lt name participation gt lt name participation gt lt name participation gt lt name participation gt lt name participation gt lt name participation gt lt name participation gt Codes to be entered FCEC e FCHC e FCEO e FCHO e EX e INSG e INSO ING INO e RUS e RUG e RUO Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Tier classification Without With transitional transitional Description of item Code measures measure Amount Type of activities e PSD e PSC e PSU e SLD e SLC e SLU LC e G Name of group of entities e g name of banking sub group or Number of entities included in the sub Type of activity S name of single entities group Group NCP Type of participations e reinsurance entity e SPV 45 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Correlation Tables Type Name 46 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Appendix D SCR Ref Description Explanation Init GCR Gross Capital Initial value refers to initial value or base Requirement value or a certain s
29. anagement deploys a Web centric interface so companies can easily roll out the application to large distributed organisations without having to install software on client machines All software resides on the server Built using a high performance scalable architecture Hyperion Financial Management simplifies deployment to users who have access to the application anytime anywhere Server Specifications Oracle s Hyperion Financial Management module can currently run on the following platforms e Windows 2003 SP1 e Windows 2000 Server SP4 Other components of Oracle s Hyperion System 9 platform can be deployed on open platforms such as Red Hat Linux A comprehensive supported platforms guide has been supplied Client Specifications Hyperion Financial Management provides complete user Web functionality but can also be accessed using Microsoft Excel This means that the following operating systems are supported for Oracle s Hyperion client software 68 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Database Technology RedHat Linux AS 4 0 Update 2 with glibc 2 3 4 2 13 or later RedHat Linux EL 4 0 e Windows Vista Windows XP Professional SP2 e Windows 2003 SP1 Windows 2000 Professional SP4 e Oracle s Hyperion products are optimized for a minimum screen resolution of 1024 x 768 e The minimum client hardware specification is Pentium 4 1 6 GHz The supported web brows
30. applies Max 0 Sum to ensure the result is not negative Capital Requirement Max 0 cap req in children SUMNRA_A Calculates sum of Net Risk Absorption Assets from the list of accounts as defined in the Custom2 hierarchy with this account as the parent Parent account Net Risk Absorption Assets X child accunts Net Risk Absorbtion Assets Then for the parent account re calculate Net Risk Absorbtion NAV Net Risk Absorption Assets Liab Tip Refer to HFM admin guide chapter 10 Managing Rules Also refer to Technical Information on page 65 of this manual for further explanation Note We support both internal standard and partial internal models By uploading or entering data for diversification on NONE see SCR matrices forms all percentages are used for all entities across the application However we offer the possibility to enter and maintain custom diversification values for each entity separately When you enter a value in the SCR matrices this value will override the existing generic value for the Group Note We offer two types of Group aggregations Default setting of the application will consolidate SCR to a group number You can recalculate the group SCR by copying the consolidated values into a dummy entity outside the group hierarchy This dummy entity will contain the consolidated numbers from all underlying entities By applying the diversification matrix values f
31. atedwithcalloption PSC TiersMeasure valuation PSD 01 Dated PSD TiersMeasure valuation SLC 01 Undatedwithcalloption SLC TiersMeasure 81 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 82 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide INDEX INDEX A account groupings 24 structure 24 validation 12 application content 74 settings 12 support 71 technical admin description 12 attributes user defined 24 C Citrix 73 client specifications 68 consol methods 12 rules 18 running a 32 consolidation see consol conventions v currency 23 D deployment options 68 dimension set up 23 E environments test and production 66 ETL 29 F fields calculated 49 forms 31 G geographic structure add organisation into 10 gross 48 H HFM overview 3 prerequisite 6 l installation guidelines 7 prerequisites 6 mitigation 48 multi language 33 N navigation workspace 31 noinp on SCR sheet 25 section and purpose 63 O operating systems 66 organisational structure 10 P participation codes to be entered for 44 Q QIS5 SCR sheet 49 upload and download template 29 QMR overview 2 security 33 quick reference guide corporate users working instructions for 33 data entry working instructions for 34 R rates 23 reconciliation process QIS1 to QIS2 13 remote access 73 report list of 59 running 31 reports 31 rules noinp
32. ative Management and Reporting for Hyperion Financial Management Guide OPERATING SYSTEMS Oracle s Hyperion Financial Management module and Foundation Services can currently run on the following platforms e Windows 2003 SP1 e Windows 2000 Server SP4 The only components in a Financial Management implementation that are supported on a UNIX operating system are the RDBMS and Foundation Services All other components including Financial Reporting must reside in a Windows environment Oracle s Hyperion Foundation Services can currently run on the above platforms plus HP UX 11 23 BM AIX 5 3 ML3 IBM AIX 5 2 ML7 e SUN Solaris 10 e SUN Solaris 9 RedHat Linux AS 4 0 Update 2 with glibc 2 3 4 2 13 or later RedHat Linux EL 4 0 Minimum and Preferred Server and Network Specifications Asaminimum Hyperion EPM servers require machines equivalent to Dual Pentium 4 2 GHz with 4GB RAM and 10 GB disk but the recommended size is Dual Pentium 4 2 8 GHz with 4GB RAM and 32 GB disk Although it is possible to install all of the solution on a single server Single server environments all components on a single server are not a recommended configuration unless we are implementing a single HFM application with less than 10 total users The network connection between these servers should be a minimum of 100 Mbps Test and Production environments When implementing Financial Management it is best to create multiple environments At a
33. ative set of parameters within a model in order to establish the impact on the outcome The following types of scenarios analysis can be distinguished Historical scenarios Hypothetical scenarios One off events for example simulation of strategic decisions Similar to life which is P amp C business which is treated as life business for Solvency Purposes Standard Formula Standard Formula a non entity specific risk based mathematical formula used by insurers to calculate their Solvency Capital Requirement under Solvency Il Systemic risk The risk of experiencing systemic events which may lead to the failure of institutions markets or financial systems Tail Value at Risk A coherent risk measure For a given confidence level 1 it measures the average losses over the defined threshold typically set as the VaR for a given quantile i e the conditioned mean value given that the loss exceeds the 1 percentile Technical Provisions Technical Provisions are the amount that an insurer needs to hold in order to meet its expected future obligations on insurance contracts Total balance sheet approach Principle which states that the determination of an insurer s capital that is available and needed for solvency purposes should be based upon all assets and liabilities as measured in the regulatory balance sheet of the insurer and the way they interact Underwriting risk The risk of a change in valu
34. aware however that while these assertions are made in good faith certain incompatibilities may exist If an incompatibility is identified Oracle may experience a delay in reproducing and fixing the resultant issues for the affected versions In the event that the issue cannot be reproduced in a native environment the customer will be required to demonstrate that the issue could be reproduced in a supported non Citrix environment or refer their issues to Citrix Citrix specific problems will be handled by the customer and Citrix Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide APPLICATION CONTENT Currencies all currencies of the world Entities all geo areas Life and non life legal hierarchy management hierarchy Accounts see Accounts on page 75 Custom1 Countries Correlation SCR Ratings SCR codes explain Tiers Tier measures Property types Custom 2 Countries Tier 1 to 2 recons SCR hierarchy Custom 3 Adjustments 74 Oracle Insurance Guantitative Management and Reporting for Hyperion Financial Management Guide 75 Application content Accounts Custom 1 AllocHealth Insurance obligations detail CorrDef Correlation matrix CorrHealth Correlation matrix Corrlndex Correlation matrix CorrLife Correlation matrix CorrLob Correlation matrix CorrMkt Co
35. based OIS5 workbook there are many total rows whose values are calculated by a series of special calculations not simply aggregating the children Such examples are weighted sums and the use of Max functions In HFM it is not possible to write calculated amounts from rules into Parent accounts Therefore all SCR accounts are in a flat structure in the hierarchy to enable them all to be writable by the rules However this creates an additional problem The rules have no idea of the structure i e parent child relationships that are implied in the Excel version of the SCR sheet So to get around this limitation a duplicate set of members are listed in the Custom2 dimension which is structured to represent the parent child relationship in the SCR sheet That way the HFM rules can become aware of the hierarchies in the SCR sheet and also be able to write to the parent accounts because they are not really parent accounts in the HEM Account dimension You could think of this technique as a sort of virtual hierarchy By moving SCR accounts around in the Custom2 SCR hierarchy this will affect the outcome of all calculations that involve a form of aggregation to a parent row This technique in addition to the use of functions in the User Defined Attributes UDAs on the account metadata ensures that future changes can be implemented as the OIS5 standards evolve with little or no changes required to the HFM rules Note Ref
36. be transferred between different legal entities of the group 36 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Term Health insurance Description Generic term applying to all types of insurance indemnifying or reimbursing for losses e g loss of income caused by illness or disability or for expenses of medical treatment necessitated by illness or disability Hedgeable risk A risk associated with an asset or an obligation that can be effectively neutralised by buying or selling a market instrument or engaging in a contract with a third party in an arm s length transaction under normal business conditions whose value is expected to change in such a way as to offset the change in value of the asset or liability caused by the presence of the risk Inflation risk The risk of a change in value caused by a deviation of the actual market consistent value of assets and or liabilities from their expected value due to inflation for example price inflation wage inflation etc leading to an unanticipated change in insurance cost and or impact of an insurance contract for example with respect to contract limits Internal model Risk management system of an insurer for the analysis of the overall risk situation of the insurance undertaking to quantify risks and or to determine the capital requirement on the basis of the company specific risk profile Liquidity ris
37. business including off balance sheet items Economic balance Balance sheet statement based on one of those accounting approaches using market sheet consistent values for all current assets and current obligations relating to in force business including off balance sheet items Equity risk The risk of a change in value caused by deviations of the actual market values of equities and or income from equities from their expected values European A method for calculating the embedded value according the principles and guidelines embedded value set by the CFO Forum Financial group A group of undertakings deploying financial activities which consists of a parent undertaking its subsidiaries and the entities in which the parent undertaking or its subsidiaries hold a significant participation Or undertakings linked to each other by a relationship subject to conditions defined in EU law Financial group A group of undertakings deploying financial activities which consists of a parent undertaking its subsidiaries and the entities in which the parent undertaking or its subsidiaries hold a significant participation Or undertakings linked to each other by a relationship subject to conditions defined in EU law Foreign exchange risk The risk of a change in value caused by the fact that actual foreign currency exchange rates differ from those expected Fungible capital That part of the capital of a group which can
38. can be input in pre defined cells Rationale We selected cell text feature of HFM to support non financial data elements Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Technical Admin Description of Application 16 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Chapter 5 Rules Topics in this section Consolidations Rules on page 18 Noinp Rules on page 18 Pull through Rules on page 18 SCR Rules on page 18 Validation Rules on page 23 Rates Currency on page 23 Dimension Set up on page 23 Accounts Structure on page 24 Scenarios on page 28 ETL on page 29 Upload and Download QIS5 Template on page 29 Workspace Navigation Filling out Forms on page 31 Running Reports on page 31 Making Corrections to Data on page 32 Running a Consolidation Group SCR Calculation on page 32 Security Users and Processes on page 32 OMR Baseline Security and Roles on page 33 Multi Language on page 33 Working Instructions for Corporate Users Quick Reference Guide on page 33 Working Instructions for Data Entry Quick Reference Guide on page 34 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 17 Rules RULES CONSOLIDATIONS RULES A standard set of consolidation and elimination rules has been used with Equity elimination e Minority interest calculation e Proportional consolida
39. chapter 2 selection of preferred language WORKING INSTRUCTIONS FOR CORPORATE USERS QUICK REFERENCE GUIDE A generic way to describe the actions required to complete a QISS5 reporting cycle is as follows Load exchange rates predefined by EIPOA load data file Load standard EIOPA corrections matrix file Load data from QIS5 upload templates template to be issued to field Reporting entities to enter data into workspace Forms 1 2 3 4 5 Force rules 6 Validate local sets and correct 7 Lock down local sets 8 Consolidate 9 Verify results 10 Lock down consolidated set 33 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Rules 11 Final report and download to QIS5 template issue to regulator WORKING INSTRUCTIONS FOR DATA ENTRY QUICK REFERENCE GUIDE A generic way to describe the actions required to perform data entry is as follows 1 Enter data in the grid Tip Refer to HRM User Guide chapter 7 using data forms 2 Calculate data grids Tip Refer to HRM User Guide 3 Print reports Tip Referto HRM User Guide chapter 9 4 Sign off local QIS5 forms to Corporate or next level Tip Refer to HRM User Guide chapter 12 Promoting and Submitting 34 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Appendix A Glossary GENERAL TERMS Term EIOPA Descript
40. cy report required by Solvency II Whilst EIOPA has not yet finalised the precise content of the QRT report market analysis and client feedback strongly suggests that it will follow the QIS5 format In addition the information contained in QRT will be a major source of input into a number of associated Solvency processes including the Solvency Financial and Condition Report SFCR the Report to Supervisor RTS report and the Own Risk and Solvency Assessment ORSA The QRT will also support the information required to implement the Use Test within the business Functionality includes e Consolidation functionality currency translation inter company elimination Built in functionality to calculate MCR and SCR for solo and groups e Reporting capabilities using Hyperion reporting standard roles and responsibilities e Strong validations e Capability to support approval and sign off procedures Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide HFM Overview HFM OVERVIEW Note Hyperion Financial Management HFM is a web based enterprise class financial consolidation and reporting application with powerful multidimensional analysis capabilities HFM is part of the Hyperion Enterprise Performance Management EPM applications HFM is modular and can be used stand alone as well as integrated with other EPM applications to deliver even more comprehensive functionality greater admi
41. d agency specific supplemental regulations As such the use duplication disclosure modification and adaptation shall be subject to the restrictions and license terms set forth in the applicable Government contract and to the extent applicable by the terms of the Government contract the additional rights set forth in FAR 52 227 19 Commercial Computer Software License December 2007 Oracle USA Inc 500 Oracle Parkway Redwood City CA 94065 This software is developed for general use in a variety of information management applications It is not developed or intended for use in any inherently dangerous applications including applications which may create a risk of personal injury If you use this software in dangerous applications then you shall be responsible to take all appropriate fail safe backup redundancy and other measures to ensure the safe use of this software Oracle Corporation and its affiliates disclaim any liability for any damages caused by use of this software in dangerous applications Oracle is a registered trademark of Oracle Corporation and or its affiliates Other names may be trademarks of their respective owners This software and documentation may provide access to or information on content products and services from third parties Oracle Corporation and its affiliates are not responsible for and expressly disclaim all warranties of any kind with respect to third party content products and services Oracle Corpo
42. e due to a deviation of the actual claims payments from the expected amount of claims payments including expenses 38 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Appendix B Forms and Tables a Entry grids by tab QIS b Diversification grids by type Form ID Form Description Remarks 0101 Participant information fill out data text is supported in the cells 0102 Contact information fill out data text is supported in the cells 0201 Balance Sheet Assets Enter data for each column 0202 Balance sheet Liabilities Enter data for each column e g IRFS SII etc 0203 Basic own funds items Enter by tier 0204 Own funds trans measure Complete by Tier 2 and 3 0205 Adj basic own funds Split by Tier 1 Tier 2 and Tier 3 0206 Valuation methods Fill out Percentages 20 20 error in space column must be moved to left desc req instead of label 0207 Intra group assets Contains the Intercompany accounts with linked forms 0207 IC intra group detail Contains a pick list with all intercompany counterparties 0208 Intra group liabilities Contains the Intercompany accounts with linked forms 0208 Intra group liabilities detail Contains a pick list with all intercompany counterparties 0301 Group coverage Enter the entities sub entities and countries provide consolidated data for group and specific details of entities or countries that exceed 2
43. e level Every product has product specific roles defined at the product level Oracle s Hyperion platform flexibly maintains authorizations using group and role based security filters while eliminating the need for users to repeatedly enter security information with single sign on capabilities Oracle s Hyperion supports Single Sign On capability for integration with products such as Oracle Identity Management through token based authentication which allows users to connect to multiple applications without having to present credentials every time When a user logs into the first Hyperion application an encrypted token of credentials is generated by the security platform and passed back to the calling application When the user launches secondary module or application from within the first application no further authentication is required Support for external authentication security mechanisms such as LDAP ADS NTLM as well as Netegrity Siteminder reduce the costs involved in keeping passwords and Ids synchronized The solution supports connectivity with the following Directory Services IBM Tivoli Directory Server 6 2 e Lightweight Directory Access Protocol LDAP e Sun Java System Directory Service version 6 3 e Novell eDirectory 8 8 e SAP R73 Enterprise 5 0 e Microsoft Active Directory 2003 Microsoft Active Directory 2008 e Netegrity SiteMinder 6 e Oracle Identity Management OIM 11 1 1 2 including these components e Or
44. e risk The risk of legal or regulatory sanctions resulting in a financial loss or loss of reputation as a result of an insurer s failure to comply with laws regulations rules related self regulatory organisation standards and codes of conduct Concentration risk The exposure to increased losses associated with inadequately diversified portfolios of assets and or obligations Cost of capital An approximation through which a risk margin is determined based on the present approach value of the cost of capital charge for all future capital requirements until run off Credit risk The risk of a change in value due to actual credit losses deviating from expected credit losses due to the failure to meet contractual debt obligations Default risk The risk of a change in value caused by the fact that actual default rates deviate from expected default rates with respect to non payment of interest or principle Diversification Reduction in risks among assets and or obligations of an institution by accumulating risks that are not fully correlated in an aggregated risk position for example the aggregated amount of risks within a product portfolio or at a company level is smaller compared to the simple addition of the individual risks Economic balance Balance sheet statement based on one of those accounting approaches using market sheet consistent values for all current assets and current obligations relating to in force
45. emonstrably ExposureCcyType guaranteed by a national government Assets L 0433 Exposure to the european ExposureECB Cental bank Assets L 0434 Information on currency risk Exposure WorldCurrencies exposures inthe currency Assets L 0469 Information on spreads Rating Spread Agg agregates Assets L 0478 Information on the ExposureCategory concentration of assets used for market risk Assets L 0492 Information on counterparty IC Risk defaultriskfortype2exposures Assets L 0501 Additional information on PropertyTypes mortgage loans IM L 0510 SCR IMspec IMspec SCR L 0710 CorrLob CorrLob valuation L 0819 Total Basic own funds before Tiers SI to SII Total adjustments own funds items L 0845 Other paid in capital Tiers SI to SII Total detail instruments 79 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide own funds items L 0846 Preference shares Tiers SI to SII Total detail valuation L 0859 Basic Own Fund Items under Tiers SI to SII the transitio valuation L 0863 Adjustments to basic own funds Tiers Deduction valuation L 0884 Valuation methods applied for ValMethods assets valuation L 0895 Valuation methods applied for ValMethods liabilitie participations L_0919 Financial and credit institutions Holds subject to CRD participations L_0933 Descriptionofparticipations Holds participations L_0933_01 participation 1 Holds own funds L_093
46. ent Init NAV Risk Absorption NAV for Net and Gross And for the accounts which have Mitigation and Gross columns e g catastrophe risks Capital Requirement Gross Mitigation 18 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Rule Name in UserDefined1 MAX1 Rules Explanation Calculates Initial Capital Requirement Default is Init Cap Requirement Max Cap Requirement in all its children Exception if a particular child is tagged with the Use Method e g Upward Downward then that account is taken instead of the Max If marked with UserDefined2 BASE then in addition for all children Init Capital Requirement children Init NAV parent account minus Risk Absorption Plus Simplification SUBMAX Calculates Init Cap Requirement parent Init NAV Max Capital Requirement in children SUB2 Takes a list of 2 accounts in UserDefined2 Calculates Init Cap Requirement Risk Absorption NAV from 1 account Minus Init Cap Requirement from 2 account MAX2 Takes a list of 2 accounts in UserDefined2 Calculates Init Cap Requirement MAX of Init Cap req from 19 account and Init Cap req from 2 account MAX3 SPEC1 Takes 4 parameters from UserDefined2 these are a list of 4 accounts as used in the calculation below Calculates Init Cap requirement Gross Risk Absorbtion 15t account Risk Absorpt
47. eographical This shows the totals by geographical areas as done in the sheet Geographical Diversification 59 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Reports 60 Report Description Geographical Business This shows the totals by lines of business as done in the sheet Geographical Diversification Own Funds This shows summary information from the Own Funds sheet List of Capital Elements at the bottom of the QIS5 Excel sheet It totals the detailed amounts that are input into the Detailed Participations This report aggregates the individual participations see the GIS5 sheet Participations into the totals that are shown at the top of the Excel sheet The rollups are by participation code Since the HFM metadata does not rollup by participation code this has to be done in Financial Reporting Valuation This report is similar to the Valuation sheet This is also available as web data entry forms Valuation Entity This shows the valuation sheet but with Entities in the columns This is useful to see a consolidated view showing also the entities that contribute Valuation Own Funds This shows the information on own funds as seen in the Valuation sheet This is also available as web forms Valuation Period This shows the main valuation accounts by period The periods are shown in the columns Own Funds Report Scenar
48. er to HFM admin guide chapter 4 Defining Custom Members Rationale Some Excel QIS5 grids require a further analysis and or breakdown We are using custom2 to support these grids Custom 3 Structure adjustment process This dimension separates original input with adjustment and is attached to the balance sheet accounts L 9900 Note Refer HFM admin guide chapter 4 Defining Custom Members We have created a default correction level to post corporate or divisional corrections 27 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Rules 28 Use of Custom3 for entering adjustments Most web data entry forms enable you to select a Custom3 member Most data is held with Custom3 None However another Custom3 member has been created for adjustments so that any oe are stored separately from the dui data EE Scenario Actual Year 2008 ta Period Jan y View Scenario Vie ath Entity None Value Entity Currency ICP ICP None Custom1 No 7 Custom3 one t 0201 Balance Sheet Assets Balance Sheet Assets Custom3 None IFRS si sil Reclass Increase Decrease Goodwill Other intangible assets There two base level members e None for most data e Adjust roll up into a parent called Total If you want to see the combined effect of the base data and adjustments then select Custom3 Total from the
49. ers are Microsoft Internet Explorer 7 0 Microsoft Internet Explorer 6 0 Firefox 2 0 0 3 e Firefox 1 5 0 3 One of the following versions of Microsoft Office is required to access Hyperion using Excel Microsoft Office 2007 Microsoft Office 2003 e Microsoft Office XP 2002 e Microsoft Office 2000 Middleware and Data Integration Export Import Organisations today have a desire to move away from the need for users to manually key in data and is looking to move towards a more automated method of data capture into the new system Organisationorganisations require a integration systems that will enable them to map and load data from multiple sources around its business Security General Oracle s Hyperion EPM System provides a common infrastructure for user provisioning and management of all Hyperion users User management enables centralized management of user access rights and accessibility to applications created under various projects using different Hyperion products The user management process allows the administrator or delegated administrator to associate users and groups to projects and give them specific roles in that application 69 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 70 User IDs and groups may exist in various authentication systems and also within products in an existing installation Also you can create new users and groups and roles at the nativ
50. es should be reported per tier and as a total Instead of inputting the total and inputting per tier in this sheet the Own funds will only be input per tier and added up as a total for OIS5 Valuation Principles With this checks between the total and the specifications per tier are no longer necessary Tip Refer to the EIOPA template for QIS5 reporting 2 Balance sheet and intra group reporting Balance sheet accounts row 10 until 104 should be filled as a total value which means that the intra group figures should be included The intra group figures which can be specified after row 215 will be automatically deducted from this total values The figures will be stored separately where the intra group figures will be stored as specified and the other figures will be stored as the sum of the total value minus the intra group value Rationale Better practice within HFM application support IC eliminations We offer multiple options to support IC reconciliation and elimination Option 1 IC entry on dummy counterpart not specified and elimination on group totals Option 2 IC entry by counterpart and subsequent elimination Option 3 No IC and manual elimination For example Participation On row 118 you will report 100 Total value including the intra group value On row 219 you will report the intra group value of 40 HFM will store 60 on the participation account 40 on the participation intra group account
51. etailed info technical Enter details of Technical provisions split Gross and Net by various product types highlighted provisions in the columns 0801 Premiums1 Add premium detail by line of business life non life health and by column gross seeded net etc 0802 Premiums2 Add aggregate premium details to for Operational risk computation 0803 Premiums 0901 Insurance Obligations1 Allocation of Health business to QIS5 segmentation gross and net figures 0902 Insurance Obligations2 Add gross best estimates provisions and best estimate for recoverables for each line of business including reinsurance 0903 Insurance Obligations3 Add figures by line if business for Risk Margin Technical Provisions Underwriting risks volume measures and expected profits in future premiums EPIFP 0904 Insurance Obligations4 Add Illiquidity premium figures primarily in two columns Allocation of Technical Provisions in Buckets Illiquidity premium bucket Value of Technical provisions in llliguidity premium buckets 0905 Insurance Obligations5 Add other Information required for the calculation of the MCR and SCR by product type e g contracts with participation clauses 0906 Insurance Obligations6 1001 Geographic Diversification Add aggregate premiums via EIOPA regional grouping and provide breakdown data for each region e g North America and Oceania 1301 MCR Top Level Life MCR top level calculation for aggregate life business for both standard and internal m
52. he data form can be changed for this the relevant column can be set on Read only in the Column property sheet of the data form Tip Refer to HFM admin guide chapter Data Form Exchanging metadata between applications in order to transfer data between your internal applications and QIS5 you need to set up a data conversion using Excel or FDM Interfacing with other data sources In case you are using a non Oracle product for consolidation and reporting we advise clients to export data in a so called csv or tab format Loading data can be done using Excel or FDM UPLOAD AND DOWNLOAD QIS5 TEMPLATE Complete the template Tip Refer to EIOPA instructions regarding Excel templates In addition to these instructions users of this application will find the following changes modifications to the spreadsheet SCR sheet We have rearranged the SCR sheet slightly in order to make it easier to enter data Tip Refer to appropriate section in this manual Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Rules 2 Drop down selections in Excel have all been replaced by 1 empty 0 flag Example How to select method Helper from Excel and HFM compared Standard model e Excel NA Standard model C Emy Helper E HFM NA C my not modeled Re Other mm Tip Referto the Smart View manual Download data from HFM to QIS5 template
53. he level of consistency endorsed by the corporate office application development department We advise to set the initial validation level of this application at a low level Over the next periods the level of validation can be gradually increased CONSOL METHODS The application is set up to work with full consolidation Furthermore the following is supported via consolidation rules e Minority interest Equity elimination 12 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Technical Admin Description of Application e Partial consolidation JV accounting Note If possible data from other application can be interfaced to this application For example an IFRS balance sheet can be uploaded into the QIS5 application from the main HFM application Rationale In our view the QIS5 reporting process would not require the need to fully support equity eliminations and full equity consolidation This can better be supported in a regular IFRS annual reporting process Also support for complicated cross ownerships and so called joint venture accounting seems to be out of place in this application Best practice shows that full equity consolidations minority interest calculations and equity participation eliminations are better performed in a dedicated annual reporting environment Data transfers from annual reporting processes to QIS5 should include all eliminations to ensure data cons
54. hock Gross cap requirement refers to the gross amount Init NCR NetCapitalRequirement Init Ass Initial Assets Initial value refers to initial value or base value or a certain shock for assets Init Liab Initial Liabilities Initial value refers to initial value or base value or a certain shock for liabilities Init_NAV Initial NAV Initial value refers to initial value or base value or a certain shock for NAV calculated GRA_Ass Gross Risk Absorp Gross value of assets Assets GRA Liab Gross Risk Absorp Gross value of liab Liabilities GRA_NAV GrossRiskAbsorp NAV Gross value of net asset value calculated GRA Simpl Gross Risk Absorp Simplification flag 1 Yes empty is NO Simplification GRA Weight Gross Risk Absorp Weight factors Weighting GRA Div Gross Risk Absorp Div Diversification factor Factor NRA Ass NetRiskAbsorp Assets Net value of assets NRA Liab Net Risk Absorp Net assets of liabilties Liabilities NRA_NAV NetRiskAbsorp NAV Net value of net asset value NRA Simpl Net Risk Absorp Simplification flag for the net value Simplification Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 47 SCR 48 Ref Description Explanation NRA Weight Net Risk Absorp Net weighting factor Weighting NRA Div Net Risk Absorp Div Net diversification factor Factor NL_Mit Mitigation value Mitigation value NL_Gross Gross value Gross value NEW Risk applicable flag
55. icipations bal catego 1209 2 Global equity bucket 71342 Value after a shockon Jobal net of TP mitigation Figure 5 Input Flag Gross Simplification Account Capital requirement Initial Value Gross Asset Value Flag Gross factors Net Asset Value Flag Net factors Oss is oss Fis T Oss Ris Gross Capital Net Capital Gross Risk Absom Gross Risk Absom Abs6rp Absorp Div Requirement Requirement Initial Assets nitial Liabilities Initial NAv hbsor Assets Liabilities _ Absorp NAV Simplification Weighting Factor 1022 Mortality ik 1022 Mortality isk SER O S 8 2 9 5g sss 3 b 1350 1 Value after an 1328_1 Value a 1334 Value after a mass wwee TS31_1 Value after a mass eme 1192 Expenses risk a X ee 8 nuno SN ENT L107 1 Redso kc AX j eh I X T gt JH NN NN IND NN ISOT Rerienstockus __ 0663 Health undewritng bw NENNEN C C 1052_5 Diversification ae RR BULETIN Emm 1531 SLT Health similar to Image 10 Diversification es RR 1053 6 Sumofrisk ee o Liso5 Mondtuc c l 8 uunnnnmm 8 E E o E I BN UENEUI e12Gg Lorgeinyrn NNNM ee NN UN 1160 Disabity morbiity i or medical expense p 1150 1 Disibiltyrisk mH 1393 Value after upward hock Value a 1025 2 apsersk O E 57 Oracle Insurance Qua
56. inancial Management Guide 9 Organisational Structure ORGANISATIONAL STRUCTURE ADD YOUR OWN ORGANISATIONAL STRUCTURE e For an Administrator user this should be clear Users of this application can either copy metadata structure from an existing application or create a new organisational structure as may be required for QISS ADD YOUR ORGANISATION INTO GEOGRAPHIC STRUCTURE For an Administrator user this should be clear QIS5 requires to report data on insurance obligations by geographical area We advise the administrator to complete the structure of the GEO organisational structure based on your internal organisational structure Note Refer to HFM admin guide chapter 4 Defining Entity Members Rationale We offer multiple options to support geographical areas Option 1 Through organisational roll up predefined in org structure each reporting entity resides in single area Option 2 By inputting geo specific data into Form 1001 Geo Div Option 3 A mix of Option 1 and Option 2 10 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Chapter 4 Technical Admin Description of Application This chapter includes details of the technical and administrative areas of QMR and includes the following topics Application Settings on page 12 VAL PVA on page 12 Validation Account on page 12 Consol Methods on page 12 Specific Application Settings OISI to QIS2 Reconcilia
57. ing Year Reporting Quarter Reporting Entity Enter Text Oracle Enterprise Performance Management System Workspace Fusion Edition Windows Internet Explorer Gc v ES hitto demodrive 1 900D worksg ace inde Google TYNN E y Favorites amp Oracle Enterprise Performance Management System W ORAC Enterprise Performance Management System Workspace Fusion Edition Navigate File Vi Administ s Help t dd di El LUPA XX QISSDEMO Za Y rei Tasklists 2 Year 2008 M Period Jan 1 View Scenario View gt ft Entity East_Europe LEt fs Value Entity Currency 1cP CP None Customt None Custom2 None j Custom3 None i Documents UIUI Participant information Participant information ir Data Forms Currency EUR 3 Data Grids iS Reporting 1 Participant information Links Participant name iS Custom Documents Participant shortname abbreviation to be used in excel columns headers E5 Related Content Legal form of the participant Tasks Date of submission Favorites Reporting basis Type of reported insurance data Asset include investment in participations or related entities Nor life or health business is pursued in more than one geo area LOTH Y THY Reporting includes ring fenced funds components Reporting includes internal
58. ing instead of Forms This is particularly the case when the QIS5 Excel section is an aggregation of another section There are many areas on the QIS5 spreadsheet where tables are shown which are just higher level totals aggregations of data from other tables Within HFM data forms you cannot perfom aggregations that are not in the application structure With Financial Reporting you can perform such aggregation The following list shows the reports that fulfill certain sections in the OIS5 spreadsheet These reports are the alternative to web data entry forms WDEFs so you will not find the equivalent in WDEFs Scenario Actual Year 2009 Period Dec Entity None Value Entity Currency Actual 2009 Dec None View Scenario View gt ICP ICP Top Custom3 TotalCustom3 Custom4 None Total Life Health Non Life Gross Net Gross Net Gross Net Gross Net Unit linked Provision for uneamed premium Life assurance provision Claims outstanding provisions Provision for bonuses and rebates Egualisation provision Other technical provisions thereof provisions for unexpired risk Technical provisions Report Description Current Situation This is equivalent to Section 2 of the Current Situation sheet Provisions valuated according to current accounting bases totals It is a sum of the data that is presented in the table for detailed information on technical provisions also on the Current Situation sheet G
59. io Actual Year 2009 Period Dec Entity None Value Entity Currency Actual 2009 Dec None View Scenario View gt ICP ICP Top Custom2 TotalCustom2 Custom3 TotalCustom3 Custom4 None Total Total With Tier 1 Tier 2 Tier 3 Without Tier 1 Dated PSD Undated with call option PSC Undated with no contractual opportunity to redeem PSU Total preference shares Dated SLD Undated with call option SLC Undated with no contractual opportunity to redeem SLU Total subordinated liabilities Letter of Credit LC Guarantees G 4 4 4 4 4 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Valuation Report OIS5 Naluation Scenario Actual Year 2009 Period Dec Entity None Value Entity Currency Actual 2009Dec None View Scenario View gt ICP ICP Top Custom TotalCustom 1 Custom3 TotalCustom3 Custom4 None IFRS Solvency 1 Solvency ll Reclassification increase decrease Goodwill TOT 4 4 J Other intangible assets TOT ae O E 9 3 d o3 i o9 E Investments 1 i i 1 Property other than own use Participations TOT md shares other than participations listed TO Equities other shares other than participations unlisted TOT Bonds Govemment Bonds Corporate asset backed securities TOT Valuation Own Funds Report
60. ion European Insurance and Occupational Pensions Authority EIOPA EIOPA is the new European authority expected to replace CEIOPS The proposals over EIOPA s powers are being debated but in general EIOPA will be given more power to enforce prudential standards through the development of Binding Technical Standards BTS They will also play a more active role over The new authority is likely to be formed during 2011 MCR Minimum Capital Requirement MCR Key quantitative capital requirement defined in the Solvency II Directive The MCR is the lower of the two capital levels required in Solvency Il and provides an approximate 1 in 6 year level of protection QIS5 QRT Quantitative Impact Studies QIS The QIS exercises test the financial impact and suitability of proposed Solvency Il requirements on firms The fifth and final QIS before implementation will be taking place this year Report to Supervisors RSR A report submitted solely to the supervisor and contains the information considered necessary for the purposes of supervision SCR SFCR Solvency Capital Requirement SCR Key quantitative capital requirement defined in the Solvency II Directive The SCR is the higher of the two capital levels required in Solvency Il and provides an approximate 1 in 200 year level of protection Solvency and Financial Condition Report SFCR This is the public disclosure report which is required to be published annually by al
61. ion 3 account and Init Cap requirement Net Risk Absorbtion 2 account Risk Absorption 4 account The reason for 4 accounts is to handle rollups in the SCR sheet where the Net and Gross risks are calculated in separate blocks rows and then combined together into a single HFM account with the Net Gross split in the custom1 dimension Takes a list of 3 accounts from UserDefined2 in the account metadata Calculates Min 1 account 2 account 3 account 1 Then populates Capital Requirement as the result 19 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Rules Rule Name in UserDefined1 SPEC2 Explanation Takes a list of 6 parameters from UserDefined2 in the account metadata as defined below 1 parameter Account must be a valid account label 2 parameter multiplier must be a number constant 3 parameter Account 4th parameter multiplier2 gth parameter Account3 6 parameter multiplier3 Calculates Capital Requirement Gross amp Net MIN Account1 Multiplier Account2 Multiplier2 Account3 Multiplier3 MUL Takes a list of 2 parameters in UserDefined2 15 parameter Account1 2 parameter Multiplier must be a constant number Calculates Capital Requirement Net and Gross Account Multiplier MUL2 Like MUL1 except it multiples 2 accounts rather than using a constant as a multiplier Takes a list of 2 parame
62. istency SPECIFIC APPLICATION SETTINGS QIS1 TO QIS2 RECONCILIATION PROCESS Reference to 1 QIS1 to QIS2 recons We support three options for current accounting principles to QIS5 reconciliation Input of complete balance sheets and validations of differences current set up From current GAAP movements to QIS5 e From QIS5 movements to current OIS5 For implementation of the last two options the hierarchy SI to SII has to be rearranged Rationale We decided to support several methods as we have learnt from our experience various approached are applied across the industry Whichever method you select is a matter of preference and changing the application to support your preferred method is described in further detail 1 Specified Tiering on basic own funds We have made the following modifications to the default spreadsheet as issued by EIOPA dated Sep 07 10 e Filling the Own funds data e Upload and download facility into HFM e Data sheet e Other minor changes e Flags capturing e Text capturing non financial information On the I Valuation tab the formula regarding the balance sheet information on basic own funds has changed The new formula in column H and row 110 until 140 will populate the total of the specified tiering 13 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Technical Admin Description of Application 14 The QIS5 Valuation Principles figur
63. k The risk stemming from the lack of marketability of an investment that cannot be bought or sold quickly enough to prevent or minimize a loss Longevity risk Type of biometric risk A change in value caused by the actual mortality rate being lower than the one expected Market risk The risk of changes in values caused by market prices or volatilities of market prices differing from their expected values Market consistent valuation The practise of valuing assets and liabilities on market values where observable with a given quality mark to market where not on market consistent valuation techniques mark to model Mark to market The practice of valuing insurance rights and obligations or more broadly security and valuation financial instruments using current market prices Morbidity risk Type of biometric risk A change of value caused by the actual disability and illness rates of the persons insured deviating from the ones expected Mortality risk Type of biometric risk A change in value caused by the actual mortality rate being higher than the one expected Non SLT Health type business which is not treated as life business Operational risk Risk of a change in value caused by the fact that actual losses incurred for inadequate or failed internal processes people and systems or from external events including legal risk differ from the expected losses Performance linked benefit with profit co
64. l undertakings and will contain detailed quantitative and qualitative elements TECHNICAL TERMS Term Best estimate Description The probability weighted average also referred to the mean The estimation process is unbiased and based on all currently available information including information of currently observable trends but excluding effects from events not yet occurred Best estimate liability The expected or mean value probability weighted average of the present value of future cash flows for current obligations projected over the contract s run off period taking into account all up to date financial market and actuarial information Business risk Unexpected changes to the legal conditions to which insurers are subject changes in the economic and social environment as well as changes in business profile and the general business cycle Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 35 Glossary Term Catastrophe risk Description The riskthat a single event or series of events of major magnitude usually over a short period often 72 hours leads to a significant deviation in actual claims from the total expected claims Claims risk An underwriting risk A change in value caused by ultimate costs for full contractual obligations claims without administration costs varying from those assumed when these obligations were estimated Complianc
65. minimum there should be a development and production environment utilizing separate hardware The best scenario is to have 3 environments development test and production with the test and production utilizing identical hardware and software configurations Single server environments all components on a single server are not a recommended configuration unless we are implementing a single HFM application with less than 10 total users Consider creating a HFM Cluster when one or more of the following conditions arise Large number of concurrent users e 24x7 operations 66 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Operating Systems High availability requirement The choices for development and test hardware vary from organisation to organisation depending upon the approach taken to the development lifecycle and the number of test procedures that it wishes to adopt The diagram below shows the recommended development and test hardware configurations to be used by the development and testing teams to test all aspects of the system with the exception of remote access The design of the optimal production environment will require an infrastructure review by our consultants with your project team The diagram below provides an indication of the type of production environment that might be proposed once such a review has taken place Microsoft IIS Server UI Services Dual Dual Co
66. nagement OMR to e enter QISS ORT risk and capital data for onward transmission to corporate head office consolidate aggregate and validate risk and capital data and generate QISS ORT reports Corporate users create this new application and provide access to users System administrators This guide assumes that users are already familiar with the structure and usage of Hyperion Financial Management HFM and purely focuses how to utilise the QMR application Please refer to the relevant sections of the HFM user guide for further information External Documentation This documentation contains references to documentation produced by companies or organisations that Oracle does not own or control Oracle neither evaluates nor makes any representations regarding the accuracy or suitability of this documentation Conventions The following text conventions are used in this document Convention Description bold Boldface type indicates graphical user interface elements associated with an action italic Italic type indicates book titles emphasis or placeholder variables for which you supply particular values monospace Monospace type indicates commands within a paragraph URLs code in examples text that appears on the screen or text that you enter Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide V Preface vi Oracle Insurance Quantitative Management and Reporting
67. ng for Hyperion Financial Management Guide Rules Section Purpose Sub SCR Nolnput NOINP for the SCR sheet Sub MCR Nolnput NOINP for the MCR sheet Sub Input This is not used in the QIS5 application It is used to override a cell to force it to become inputable subject to the user s security setup where normally it would be a read only cell Sub Consolidate This is the consolidation routine with equity elimination and minority interest calculations SubEliminate strAccount strICP IC elimination section Pullthrough Accounts Pullthrough means pulling through an amount from another cell sheet In other words the cell is calculated from another cell or combination of other cells In HFM these pullthroughs are performed within the sheet specific routine for example ValuationSheet performs all pullthroughs to the Valuation Sheet 64 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Appendix I Technical Information This section relates to the underlying technology that the ORM application runs on Oracle Hyperion Financial Management HFM All the information in this section is based on standard HFM information Topics in this appendix Operating Systems on page 66 e Database Technology on page 68 e Application Support on page 71 e Remote Access Solution Citrix etc on page 73 e Application content on page 74 65 Oracle Insurance Quantit
68. nical assistance for all Oracle products via telephone or online at Oracle Metalink e Advanced Support options include e Assisted Services Customized assistance for support enhancements and improving processes 71 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide e Technical Assessments Configuration and performance analysis with focused service delivery reviews Business Critical Assistance Additional services for personalized support and proactive recommendations e Solution Support Centre A combination of reactive and proactive support services Details of Oracle Support are available online at www oracle com support 72 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Remote Access Solution Citrix etc REMOTE ACCESS SOLUTION CITRIX ETC 73 Oracle s Hyperion EPM System has been architected as a Web based solution making it easy to deploy and manage Some organisations however may wish to deploy Hyperion using Citrix to overcome the challenges of the IT landscape that they have Oracle will support Hyperion products on Citrix consistent with compatibility assertions provided by Citrix Some Oracle Hyperion customers use Citrix terminal server software now called Citrix Presentation Server previously known as Citrix MetaFrame XP This software allows end users to run their consolidation application remotely on
69. nistrative ease of use and faster deployment The product is delivered with e Hyperion Financial Reporting e Hyperion Foundation Services HFM helps organisations shorten the financial consolidation and reporting cycle while providing more in depth analysis capabilities It provides enhanced decision support capabilities to employees across the enterprise and allows organisations to continually adapt and align strategic and operational plans Ultimately this leads to better execution and greater bottom line financial returns The system uses today s most advanced web technology yet is designed to be used and maintained by the finance team With purpose built features HFM is the cornerstone of any sustainable compliance framework and helps businesses comply with today s stringent reporting regulations on an ongoing basis HFM is an automated web enabled reporting solution for analytic applications that transforms data into meaningful business information and empowers users to make critical time sensitive business decisions Users can quickly create reports without IT assistance and deliver them immediately or schedule them for later delivery through a variety of channels We believe a subset of this guide would function as an end user manual and with some modifications could function as a company specific user guide Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Introduction
70. ntitative Management and Reporting for Hyperion Financial Management Guide Examples Figure 6 Account TEE 000 L m 1053 11 Sum of rskeomponents a ey Roa oo IPSE EDU Sia FS L 3 mitigation Input Mitigation Capital requirement Initial Value Gross Asset Value Gross factors Net Asset Value Flag Net factors Mitigation Flag Figure 7 SCR Input Input Oper Risk Input Net Capital requirement Initial Value Gross Asset Value Flag Gross factors Net Asset Value Gross Ris Gross Risk Gross Risk Gross Ris Absorp Gross Risk _ Absorp Absorp Absom Div Net Risk Absop Net Risk Absop Net Risk Absop Liabilities Absorp NAv Simplification Weighting Factor lets Liabilities NAV 1081 Future discretionary enefits un wiog mel 1102 Adjustment fa fefered taxes equivalent cenario premiums previous 12 onths Earned nOn NEROST premiums previous 12 months 1262 anons techni rovisions unit linked TASS Nor IT GOTT echnical provisions 58 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Appendix G Reports LisT OF REPORTS Some of the sections of the original QIS5 workbook are better implemented as a report as opposed to a data entry form Reports are available under the Explorer menu Navigate File Edit B f Explore HomePage Why use Hyperion Financial Report
71. ntracts A contractual benefit sharing the policyholder in the performance of the insurer i e the surplus under a group of contracts or the surplus of the entire entity achieved after providing the guaranteed benefits after making the related internal expenses as a result of received guaranteed premiums and taking into account the investment income Procyclicality The cumulative pressure on a larger number of institutions to sell assets or raise capital at the same time due to the Solvency Capital Requirements and thereby potentially causing more extreme market movements than would otherwise be the case Provision The amount needed under a certain measurement of a present obligation to meet that obligation adequately Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Glossary Term Required economic capital Description The total of assets measured at market consistent value internally required by an insurer above the market consistent value of obligations in order to reduce the risk of not meeting the obligations to a defined risk measure For example VaR TVaR EPD and within a defined time period for example one year Risk margin A generic term representing the value of the deviation risk of the actual outcome compared with the best estimate expressed in terms of a defined risk measure Scenario analysis SLT Simulation of an altern
72. odels 1302 MCR Top Level non Life MCR top level calculation for aggregate non life composite business for both standard and internal models 1303 MCR Detailed calculation Detailed MCR for non life composite undertaking breakdown by EIOPA product types 1304 MCR Detailed calculation Detailed MCR for non life composite undertaking breakdown by EIOPA product type non life life hybrid products 1305 MCR Detailed calculation Detailed MCR for life undertaking breakdown by EIOPA prodct type life products 40 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Form ID Form Description Remarks 1701 IM Results1 Final aggregate SCR 1702 IM Results2 Optional table to be completed if SLT health underwriting risk is not calculated in accordance with the standard formula 1703 IM Results3 BSCR final calculation 1704 IM Results4 Enter details of the categories of risk in the BSCR e g market Default etc 1705 IM Results5 Optional table to be completed if market risk is not calculated in accordance with the standard formula 1706 IM Results6 Optional table to be completed if underwriting risk is not calculated in accordance with the standard formula 1707 IM Results Optional table to be completed if health underwriting risk is not calculated in accordance with the standard formula 1901 IM Blank SCR Calculation 1902 IM Blank SCR risk factors by business uni
73. or the group or for the dummy entity a group SCR will be calculated Other methods of capital aggregations are not supported by this model 22 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Rules VALIDATION RULES The following validation rules have been created in the rule file see Rules on page 63 e V 0001 Valuation of the QIS 1 to Qis2 reconciliation process e V 0002 Check that the balance sheet difference 0 e V 0003 Check Premiums Net Written with Geo Div sheet V 0004 SCR flag check each flag group can only have abs Total 1 e Validations account for lock and potentially the total of all individual checks Tip Refer to HFM admin guide chapter 10 Setup Validation Account page 324 The QMR application contains all the main world currencies used to date Tip Refer to HFM admin guide chapter 4 Defining Currencies You can upload the standard EIOPA rates by uploading the file Fx EIOPA from the data directory RATES CURRENCY The QRM application contains all the main world currencies used to date Note The QIS5 main currencies are listed at the top and the rest of the World currencies appear after these Tip Refer to HFM admin guide chapter 4 Defining Currencies DIMENSION SET UP Dimensions describe an organisation s data and usually contain groups of related members Each dimension consists of members The members are
74. pically the most involved aspect of administration as it generally also includes a degree of reporting and analysis in addition to pure data movement Typically this process takes approximately 50 100 of one person from Finance Business resource s time depending on the nature and frequency of the data flows into and out of the system d Server and Infrastructure Support The solution s server and infrastructure requirements typically are in line with corporate standards and generally do not generate much if any incremental server or infrastructure administration that would not already be taking place back ups communication monitoring etc Oracle Support has over 300 support analysts in the UK and over 6 000 people worldwide providing both standard product support and advanced specialist support services With both telephone and web based support services through the support web site Oracle Metalink the Follow The Sun support model is provided by Global Support Centres in UK USA and Australia giving advice to customers in English 24 hours a day 365 days per year The Update Subscription Service is a pre requisite for all other Oracle Support Services offerings and provides customers with rights to Oracle product upgrades maintenance releases patches documentation and access to Oracle s knowledge base of at Oracle Metalink There are several support options e Standard Product Support provides you with around the clock tech
75. pward MAX MK Tint up 0O MAX MKTint d own 0 L 1112 Basic operational risk max2 L 1474 L 1484 MAX Oppremiums Opprov charge isions L 1453 Global Max3 L_9340 L_9340 L_1341 L MAX F 344 F353 0 _1342 L 1011 Intangibleassetrisk Mul L_1591 0 8 80 1A L_1035_2 Premium and reserve Mul2 L 1593 2 L 1205 2 F707 F709 risk L 1079 Adj for TP equivalent Spect L 1050 L 1080 L 1081 For Spec1 Spec7 Refer scenario to detailed section on SCR functions earlier in this document L_1529 SCRoperationalrisk Spec2 L_1050 0 3 L_1112 1 L_1 580 0 25 L 1474 Premium based risk Spec3 L 1171 2 L 1175 2 L 1 component 173_2 L_1172 L_1176 L_ 1174 L_1484 Provisions based risk Spec4 L_1263 L_1264 L_1439 component L_1205 Function of the standard Spec5 L_1560 deviation Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 53 Functions of SCR Account Desc UDF1 UDF2 Excel Expl L 1205 2 Function ofthe standard Spec5 L 1560 2 deviation L 1099 Adj for deferred taxes Spec6 L 1401 2 modular L 1100 AdjforTP modular Spec7 L_1050 L_1081 L_0663 Healthunderwritingrisk Sgrt MX CorrHealth SQRT MMULT TRANSP OSE 1 F286 F292 J286 J 292 L_1080 nBSCR under Sum2 L_1050 L_1100 equivalentscenario 54 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Appendix F Examples Figure 1 Web forms Navigate forms Navigation Report
76. r The system knows which matrix to use from the account s UserDefined2 attribute The system knows which accounts to cross multiply from the descendants of TopCustom1 for the Matrix account The factors amounts held in the Matrix account are by custom1 rows and custom2 columns The factors in the matrix account are stored at Entity None because the factors are not supposed to change per entity 21 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Rules Rule Name in UserDefined1 DIF Explanation Takes a list of 2 accounts in UserDefined2 Simply calculates the difference between the two Init Gross Capital Req Accountt Init_NCR Account2 Init NCR Init Net Capital Req Accountt Init_NCR Account2 Init NCR SUM Aggregates the child accounts as defined in the Custom hierachy The account label is mentioned in the Custom2 hierarchy No parameters are supplied in UserDefined2 SUM2 Aggregates a specified list of accounts as specified in UserDefined2 This is used where there is no hierarchical rollup in Custom2 and you want to add a specitic list of accounts SQRTSUM Calculates square root of the squares of all the children The children are defined in the Custom rollup which mentions this account Capital Requirement SQRT Acc1 Acc2 Acc3 Acc n SUMMIN Calculates Sum of children as defined in Custom2 rollup Then
77. ration and its affiliates will not be responsible for any loss costs or damages incurred due to your access to or use of third party content products or services CONTENTS Preface Chapter 1 Introduction 2 QMR Overview 3 HFM Overview Chapter 2 Installing QMR 6 Prerequisites 7 Installation Guidelines 7 Overview 7 Zip File Contents Chapter 3 Organisational Structure 10 Organisational Structure 10 Add Your Own Organisational Structure 10 Add Your Organisation into Geographic Structure Chapter 4 Technical Admin Description of Application 12 Technical Admin Description of Application 12 Application Settings 12 VAL PVA 12 Validation Account 12 Consol Methods 13 Specific Application Settings QIS1 to QIS2 Reconciliation Process Chapter 5 Rules 18 Rules 18 Consolidations Rules 18 Noinp Rules Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide i Contents 18 18 23 23 23 24 28 29 29 Pull through Rules SCR Rules Validation Rules Rates Currency Dimension Set up Accounts Structure Scenarios ETL Upload and Download QIS5 Template 31 Forms and Reports 31 31 32 32 32 33 33 33 34 Workspace Navigation Filling out Forms Running Reports Making Corrections to Data Running a Consolidation Group SCR Calculation Security Users and Processes QMR Baseline Security and Roles Multi Language Working Instructions for Corporate Users
78. re 2 8Ghz CPU Dual Dual Core 2 8Ghz CPU Or VMWare Or VMWare 4 GB System RAM 4 GB System RAM Windows 2003 SP2 3 Party Java Server Running Running Financial Management Web Workspace Financial Reporting Web Web Analysis Shared Services FM Application Serven RDBMS rit TOM e aia Dual Dual Core 2 8Ghz CPU yaam RAM 4 GB System RAM Windows 2003 SP2 n WW Running Running lt Financial Management rae Microsoft SQL Server or IBM 67 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide DATABASE TECHNOLOGY Oracle s Hyperion Financial Management requires one of the popular RDBMS to store application data Some of the other modules that underpin Hyperion Financial Management such as Foundation Services also require an RDBMS to store data A guide has been supplied with this response that details the RDBMS requirements for each module In order to provide a response here a select amount of information is provided below giving the salient points The supported RDBMS Oracle s Hyperion Financial Management is e Oracle 11g e Oracle 10g Release 2 10 2 0 2 e Oracle 10g 10 1 0 5 e Oracle 9i 9 2 0 5 IBM DB2 9 1 IBM DB2 8 2 e Microsoft SQL Server 2005 SP1 Microsoft SQL Server 2000 SP3a Deployment Options Hyperion Financial Management provides complete user Web functionality including reporting and analysis process management and data entry Hyperion Financial M
79. rrelation matrix CorrNature Correlation matrix CorrNL Correlation matrix CorrNLCat Correlation matrix CorrNLCat1 Correlation matrix Exposure Assets detail ExposureCategory Assets detail ExposureCcyType Assets detail ExposureECB Assets detail Holds Participations IC Risk Assets IC Risk Other Assets IC Risk Spec Assets IC RiskReclnterm Assets IMspec internal model InsuranceObligBE Insurance obligation InsuranceObligTotal Insurance obligation MCR calc MCR MCR Top calc MCR MX CorrCATHealth Div matrix MX CorrDef Div matrix MX CorrHealth Div matrix Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide MX_Corrlndex Div matrix MX_CorrLife Div matrix MX_CorrLob Div matrix MX_CorrMkt Div matrix MX_CorrNL Div matrix MX_CorrNLCat Div matrix MX CorrNLCat1 Div matrix MX CorrNLperils Div matrix MX CorrNSLTHealth Div matrix MX CorrSCR Div matrix MX CorrSLTHealth Div matrix PremDiversification Geo div PropertyTypes Assets Rating Assets Rating_AAA Assets RingFencedFunds RFF SCR_Div_levels Div matrix SCR MX Equity Div matrix SCR MX Market Div matrix SCR VolMeasure Div matrix SCR1 Tech SCR account SCRCols02 Tech SCR account SCRCols03 Tech SCR account SCRCols04 Tech SCR account SCRCols05 Tech SCR account SCRCols06 Tech SCR account SCRCols07 Tech SCR account SCRCols08 Tech SCR
80. s instructs HFM for these accounts only to calculate a volume decrease based on the Solvency I amount i e Value Decrease SI 1 Custom 1 Structure Account breakdown Tip Refer to HFM admin guide chapter 4 Defining Custom Members Rationale Rationale Most Excel grids in the QIS5 template have been translated into a Account custom1 combination Exceptions to this rule are reflected in the appendix Custom 2 Structure Accounting principles The main columns of the Valuation sheet Current accounting principle SI QIS5 movements have been built into the Custom2 dimension Here also alternative rollup can be created if a client want to fill the OIS5 column with delta s SI movement QIS5 See Specific Application Settings QIS1 to QIS2 Reconciliation Process on page 13 Product structures Total e Total Non life excluding health Motor vehicle liability insurance e Other motor insurance Marine aviation and transport insurance Fire and other damage to property insurance e General liability insurance e Credit and suretyship insurance Legal expenses insurance e Assistance 25 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Rules Miscellaneous financial loss e Non proportional property reinsurance e Non proportional casualty reinsurance e Non prop marine aviation and transport reinsurance e Total health similar to non life e Medical expen
81. se insurance e Income protection insurance e Workers compensation insurance e Non proportional health reinsurance e Total Health similar to life e Insurance with profit participation e Index linked and unit linked insurance e Other life insurance e Annuities stemming from non life insurance contracts e Accepted Reinsurance e Total Life excluding health Insurance with profit participation e Life insurance with profit participation Death e Life insurance with profit participation Survival e Life insurance with profit participation Disability morbidity e Life insurance with profit participation Saving e Index linked and unit linked insurance e Index linked and unit linked life insurance Death e Index linked and unit linked life insurance Survival e ndex linked and unit linked life insurance Disability morbidity e Index linked and unit linked life insurance Saving e Other life insurance e Other life insurance Death e Other life insurance Survival e Other life insurance Disability morbidity e Other life insurance Saving e Accepted Reinsurance 26 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Rules e Accepted reinsurance Death e Accepted reinsurance Survival e Accepted reinsurance Disability morbidity e Accepted reinsurance Saving e Annuities stemming from non life insurance contracts SCR Hierarchies in Custom2 In the SCR sheet in the Excel
82. space Valuation own Funds Valuation by period Current Situation Geographical Geographical by business Own Funds Participations Valuation Valuation by Entity Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Rules Report Title Geographical Report Description This shows the totals by geographical areas Geographical business This shows the totals by geographical areas Own Funds This shows summary information from the Own Funds sheet It totals the detailed amounts that are input into the Detailed List of Capital Elements at the bottom of the QIS5 Excel sheet Participation Overview of the participations Participations Overview of Valuation sheet assets and liabilities per accounting principle Valuation Overview of Valuation sheet assets and liabilities per accounting principle Valuation entity Overview of Valuation sheet assets and liabilities per entity dynamical Valuation own Funds Overview of Valuation sheet own funds Valuation period Overview of Valuation sheet assets and liabilities per period MAKING CORRECTIONS TO DATA Once data has been submitted to head office and data cannot be resubmitted on time we advise to use one of the below mentioned correction methods 1 Posta journal on custom3 None and entity level Post a journal on custom3 member corporate correction 2 3 Dataentry on
83. t 1903 IM Blank Risk Margins meri mcra 1 mcr2 2 mcr2 3 mcr2 4 SCR Switch Refer to SCR on page 47 es SCREquiv Refer to SCR on page 47 SCRMain Refer to SCR on page 47 SCR Refer to SCR on page 47 available 41 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Forms and Tables 42 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Appendix C Correlation Tables CORRELATION TABLES Form ID Form Description Remarks SCR xx Overall SCR diversification sheet SCR X Interest dividend sheet scr1 29 MX CorrCATHealth Cat risk health scr5 2 MX_CorrDef Default risk scr5 42 MX_CorrHealth Health underwriting risk scr6_11 MX_Corrlndex Equity risk scr7_1 MX_CorrLife Life underwriting risk scr8_12 MX CorrLob scr8 56 MX CorrMkt Market risk correlation matrix scr8_6 MX CorrNL Non life correlation scr8 9 MX CorrNL Cat Non life cat risk 1 scr8 92 MX CorrNLCat1 Non life cat risk 2 scr9 32 MX CorrNLperils Perils scr9 49 MX CorrNSLTHealth Health underwriting similar to life scr9 51 MX CorrSCR Overall correlation matrix scr9 52 MX CorrSLTHealth Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 43 Correlation Tables CODES TO BE ENTERED FOR PARTICIPATIONS Market value Holdings in from quoted Adjusted participations
84. ters in UserDefined2 La parameter Account1 and parameter Account2 Then calculates Capital Requirement Gross Account1 Gross Account2 Gross And Capital Requirement Net Account Net Account2 Net SPEC3 Takes a set of 6 parameters in UserDefined2 1 Account EarnLife referred to in QIS5 xls as EarnLife 2 Account EarnLife UL 3 Account EarnNL 4 Account pEarnLife 5 Account pEarnLife UL 6 Account pEarnNL Calculates Capital Requirement Net and Gross 0 04 EarnLife EarnLife UL 0 03 EarnNL Max 0 0 04 EarnLife 1 1 pEarnLife EarnLife UL 1 1 pEarnLife UL Max 0 0 03 EarnNL 1 1 pEarnNL SPEC4 Takes 3 parameters in UserDefined2 1 Account TPLife 2 Account TPLife_UL 3 Account TPNL Calculates Capital Requirement Net and Gross 0 0045 Max 0 TPLife TPLife_UL 0 03 Max 0 TPNL SPEC5 Takes a single account in UserDefined2 Calculates Capital Reguirement EXP 2 58 SQRT Log Amt Amt 1 SQRT Amt Amt 1 1 20 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Rule Name in UserDefined1 SPEC6 Rules Explanation Takes a single account Account1 in UserDefined2 Calculates Capital Requiremnet Account1 Gross Capital Requirement Account1 Net Capital Requirement i e difference between Gross and Net in the specified account SPEC Takes a list 2 acco
85. tion NOINP RULES All blocked cells in the template have been blocked with noinp no input rules PULL THROUGH RULES e Linked all cell based formulas from the template to prevent validations and potential data inconsistency All linked cells are blue marked and all input cells are yellow marked The blue marked cells cannot be changed and will be calculated after data has been sent into the HFM application Rationale We have created so called noinp rules to prevent data from being entered and uploaded in to the HFM database in places where we would not expect any data In order to retain data consistency we have included rules to prevent data input We have also built pull through rules to ensure data consistency of data elements We have incorporated all cell references form the QIS5 template SCR RULES Special rules have been created to support SCR and MCR calculations In order to support the specific calculations for SCR a number of new functions have been made available To allow for future changes the functions are driven by user defined attributes in the account metadata This saves having to re write the rules if the SCR calculation requirements change The table below shows what functions are available These are put into the UserDefined1 attribute in the accounts metadata Rule Name in UserDefined1 Explanation blank If no calculation is specified perform the following nothing entered Capital Requirem
86. tion Process on page 13 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide 11 Technical Admin Description of Application TECHNICAL ADMIN DESCRIPTION OF APPLICATION APPLICATION SETTINGS Calendar file gt is client specific For HFM users it is easier to use their own calendar file Clients are advised to use their current calendar file in order to retain reporting consistency across the applications in case a different calendar file is used Tip Refer to HFM admin guide chapter 2 Creating Applications Note Even though the reporting calendar contains for example monthly data the same calendar file can be applied by selecting quarters for reporting only VAL PVA Users are advised to use VAL method only as intermediate reporting periods are possibly missing so PVA calculations cannot be performed accurately and consistently the application does not calculate Fx on BS movements Users are also advised to use the same Fx for AVG and Closing rates VALIDATION ACCOUNT The validation account is currently not assigned System admin can set up account for lock in order to ensure consistency in data submissions If the validations block any submission of data the following account has to be assigned as Validation account Validations Tip Refer to HFM admin guide chapter 11 page 324 Rationale During implementation a decision needs to be made on t
87. total Mostly in a worksheet the breakdowns are repeated In HFM the main design solution is e Item that is reported on Account e Rows Custom e Columns Custom2 Or e Item that is reported on Account Rows Custom2 e Columns Customl ACCOUNTS STRUCTURE Account Groupings L_0000 Participant information Contract information L_0257 Coverage of the group submission L_9900 Balance sheet from Valuation sheet L_9000 Disclosures other sheets L_0845_T Other paid in capital instruments Validation Validation accounts Rates Currency rates User Defined Attributes UDAs Rationale We have used the account structure for most of the data elements found in the row of columns B C or D The information stored in columns E to Z are mostly reflected in a combination of Custom 1 and or Custom 2 In the QIS5 application User Defined Attributes UDAs are used to greatly reduce the maintenance on HFM rules 24 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Rules In the most general sense UDAs are used to direct the HFM rules to perform certain actions on specific account or to tag certain accounts which share a common functional property The areas in the QIS5 HFM application that use UDAs are SCR sheet see SCR Rules on page 18 including noinp on the SCR accounts e MCR sheet Reversals on the valuation sheet In this case the account has UserDefined1 REV Thi
88. unts in UserDefined2 Calculates Capital Requirement MIN Account1 Gross Capital Req Account1 Net Capital Reg Account2 Gross Capital Requirement Takes a list of 2 accounts in UserDefined2 Take Capital Requirement from the following e Ifthe 1 account is non zero amp not blank then use that Otherwise take the value from the 2nd account SUB2 Takes a single account Account in UserDefined2 Calculates Capital Requirement Gross Account1 Initial NAV lt this account gt Gross Risk Absorption NAV lt this account gt Gross Risk Absorption Simplification and Capital Requirement Net Account Initial NAV lt this account gt Net Risk Absorption NAV lt this account gt Net Risk Absorption Simplification SQRT Looks at the Matrix account defined in UserDefined2 for this account Then look at all accounts that are defined in Custom1 Custom2 for the matrix account Then perform a matrix multiplication of all factors in the matrix against each corresponding account referred to by the columns rows in the matrix Put the sum of the weighted amounts into the Custom1 members Gross Risk Absorption weighted Net Risk Absorption weighted AccountX TopCustom1 M_1234 matrix account M_1234 has rows columns as defined in the Custom1 Custom2 Acc1 Acc2 Acc3 AccountN Go through each custom1 row for the matrix and accumulate X M_1234 Custom1 Account n Remembe
89. y classes to the application e Assigning users to the application e Assigning access rights to the users e Determining where in the Workspace folder directory the QIS5 reports will be stored Additional steps are e Extracting the ZIP file to a temporary directory e Copying extracted files to appropriate directory Tip Refer HFM Admin Guide chapter Load instruction new app rules metadata etc Refer HFM Admin Guide chapter Load instruction forms and reports e Loading instructions EIOPA dat files e Copying language packs Tip Refer to HFM admin guide chapter 2 Managing Applications ZIP FILE CONTENTS Extension File Type Notes des reports WDF WDEFs RLE Rule file load rules into app Per Period file use per file during app creation XLS template file and language template dat Datafile data EIOPA config data into new app XML App file upload app definition file into new app Sec security file upload security into app Oracle Insurance Guantitative Management and Reporting for Hyperion Financial Management Guide Installing QMR 8 Oracle Insurance Quantitative Management and Reporting for Hyperion Financial Management Guide Chapter 3 Organisational Structure Topics in this chapter Add Your Own Organisational Structure on page 10 e Add Your Organisation into Geographic Structure on page 10 Oracle Insurance Quantitative Management and Reporting for Hyperion F

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