In the latest event of the series Taxonomy meets the market on 08 February 2023 , EIOPA presented the latest developments of the technical requirements for the upcoming Solvency II submission, but also for the other reporting standards governed by EIOPA.
The main point, regarding Solvency II reporting is that even though the final version of taxonomy 2.8, including validations, was expected in January, a public working draft of version 3 version was published instead. The new date for EIOPA to publish final version of taxonomy 2.8 is now 17 Мarch 2023.
However, several problems with the PWD3 have already been reported by various market participants during the day, so it is likely that another public working draft will be published before the final version.
The multiple issues are likely a result of the change of the internal systems used by EIOPA to create the taxonomy files. The purpose of this change is to harmonize the technical and business developments of each new taxonomy and to make the overall process less error prone. As a result of the changes the format of the excel file that EIOPA published for each taxonomy – DPM Dictionary, Solvency 2 Annotated Templates, Solvency II List of validations – has been changed. During the event, several software providers pointed out that changing in excel format would cause technical problems for them. EIOPA’s position on this is that XBRL taxonomy is leading and is meant to be the single source of truth, and the excel representations can change format.
It is important to underline that our service does not use any of the excel outputs published by EIOPA, but the XBRL taxonomy files. Therefore, the changes to the software used by EIOPA will have no impact on our processes and timelines for adopting the taxonomy 2.8 once the final version is released by EIOPA.
The actual changes published in PWD3 are mainly focused on the first publication of validations checks for taxonomy 2.8. In total, the book contains just over 5500 validation checks, of which about 4000 are blocking, divided as follows:
When it comes to the actual reporting templates, the changes compared to the previous version 2.8 PWD2 are very limited and mostly technical.
The total changes for 2.8, compared to previous taxonomies are:
The main changes to the templates, as discussed in PWD 1 and PWD2, are:
Other regulatory issues discussed during the event: