XBRL for Solvency II reporting
In May 2011 EIOPA announced that they have chosen eXtensible Business Reporting Language (XBRL) as the uniform format for Solvency II insurance reporting across Europe. XBRL is a language for the electronic communication of business and financial data which is revolutionising business reporting around the world. The introduction of XBRL ‘tags’ enables automated processing of business information by computer software, allowing the data to be treated ‘intelligently’.
The introduction of XBRL for Solvency II presents a radical change to the IT infrastructure and reporting requirements. With regulatory developments and the promise of efficiency pushing XBRL into the headlines, insurers in Europe should be taking action now to assess the impact of the technology.