Interactive Data, a leading provider of trusted, mission-critical information for over 10 million financial instruments, announces the launch of a fully integrated ‘Funds Look-Through’ service for Solvency II reporting purposes, in collaboration with Morningstar.
Solvency II is the European-wide regulation for the insurance industry designed to improve capital adequacy and transparency. One of its three pillars concerns Reporting and Disclosures, of which a key element is the ‘Look-Through Principle’–-the collection and disclosure by insurance companies of their fund investment holdings. While not obligatory, insurance companies that gather the market data to fulfil the look-through reporting requirement are expected to have a reduced Solvency Capital Requirement and an enhanced ability to calculate their Minimum Capital Requirement, both of which can lead to significant cost savings.
With the interim deadline for look-through reporting coming in November, Morningstar and Interactive Data are working together to enable a fully integrated service that reduces the need for insurance companies or their asset managers to source data from multiple providers, and to commingle that data in an efficient and meaningful way.
“Forward-looking insurance companies understand the complexity of timely acquisition of high-quality data from hundreds of asset managers. What Morningstar and Interactive Data can offer together allows firms to take advantage of a unified solution that can reduce their costs and enhance their data governance,” said Mark Roomans, Chief Executive Officer of Morningstar UK.
“Working with Morningstar, we were able to combine our global cross-asset data coverage with Morningstar’s funds holding data to enable a fully-integrated service. Asset classification, with global entity linkage, gives institutional clients a streamlined view of their investments which could result in a reduced cost of capital,” said Claudio Salinardi, Managing Director of Pricing & Reference Data EMEA with Interactive Data.