A Solvency II XBRL Converter is a specialized software tool used by insurance undertakings and groups to transform their quantitative reporting templates (QRTs) into the eXtensible Business Reporting Language (XBRL) format, as required by European insurance regulators. XBRL is a standardized, machine-readable format mandated by the European Insurance and Occupational Pensions Authority (EIOPA) for the submission of regulatory data. Because QRTs are typically prepared in Excel or database environments, the conversion into XBRL ensures uniformity, automation, and accurate validation of reporting across all member states.
Purpose and Role in Regulatory Compliance
The main role of a Solvency II XBRL Converter is to ensure that insurers can meet regulatory obligations by delivering QRTs and other reports in an approved, structured format. XBRL allows regulators to automatically validate, process, and store large volumes of data consistently. Without a proper conversion tool, the technical burden of manually preparing compliant XBRL files would be significant and error-prone.
Key Features of XBRL Converters
Solvency II XBRL Converters offer a range of features to support efficient and reliable transformation of reports:
- Automated mapping of QRT Excel templates to EIOPA’s taxonomy structure.
- Support for multiple taxonomy versions (e.g. different Solvency II reporting cycles, country-specific extensions).
- Built-in validation engines to ensure the output meets XBRL technical and business rules, with error logs and correction suggestions.
- Support for taxonomy packages (including instance documents, DPM dictionaries, and validation artifacts).
- Integration with internal systems such as actuarial engines, SCR calculators, and regulatory reporting platforms.
Integration with Reporting Workflow
XBRL conversion is typically one of the final steps in the Solvency II reporting process. After calculations are performed and validated internally, QRTs are exported to Excel or a database. These files are then imported into the converter tool, which performs format transformation, validation, and packaging into a submission-ready XBRL instance. The final file is then uploaded to the national supervisory portal, such as the CBI portal in Ireland.
Benefits of Using a Dedicated Converter
Using a reliable Solvency II XBRL Converter reduces regulatory risk, enhances process efficiency, and ensures accurate and timely submissions. Key benefits include:
- Compliance with complex and evolving EIOPA taxonomies.
- Reduced manual work and errors through automation.
- Improved auditability through clear mapping and validation trails.
- Scalability across entities and reporting cycles.
In summary, a Solvency II XBRL Converter is an essential component of an insurer’s regulatory reporting infrastructure. By enabling accurate, validated, and compliant submissions to supervisory authorities, it plays a critical role in meeting Solvency II Pillar 3 disclosure requirements efficiently and reliably.