Insurance firm Allianz Global Corporate & Specialty (AGCS) is cleaning up its data to support its compliance with the European Union's Solvency II directive.
The large corporate and specialty insurance firm has selected the DataFlux Data Management Platform to govern 110 separate data feeds, many of which are relevant for Solvency II risk modelling.
Through a data management methodology combined with Six Sigma business process improvement strategies, AGCS is focused on identifying and correcting poor-quality or non-compliant data at the source.
As part of its Solvency II initiative AGCS formed a data governance team comprised of data management and IT experts that makes recommendations to a steering committee of senior management. The project recommendations are focused on establishing and maintaining data quality business rules to improve the quality of corporate data.
This data governance approach is underpinned by DataFlux technology that provides monitoring of data quality metrics using a dashboard.
Using Six Sigma's defects per million opportunities (DPMO) metric, the data governance team can now drill down to measure the impact of data quality business rules, which are designed and executed within the DataFlux Data Management Platform. These business rules are applied to each of AGCS' 32 Solvency II data flows before the data enters the company's risk capital model.
This approach "allows a high degree of accuracy, appropriateness and completeness of the company's credit and market risk data, business risk data and insurance risk data", said AGCS.
Rolf Neuerburg, data governance manager at AGCS, said: "We now have a process and organisational structure which means we can ask 'how reliable is the data upon which we base our decisions?'."
"We've made great progress so far with a 15 percent overall improvement in data quality."
Allianz, the parent company of AGCS, is comping to the end of a five year £274 million outsourcing IT deal it signed with Fujitsu Services in 2007. The deal covered Allianz Insurance, Alliance Global Investors and Kleinwort Benson Private Bank in the UK.