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Opportunity for insurers with Solvency II - controlling risk and growing your business
Solvency II is a comprehensive overhaul of European insurance regulations. The framework directive, adopted by the European Parliament in April 2009, encompasses strict new requirements for capital adequacy, risk management, governance, the supervisory review process and reporting. European insurance supervisors are now focusing on the details, putting the framework into practice. Insurers need to act now to address changes required in business processes, governance, expert modeling capability, management information, underlying data quality, and systems architecture. For those that are willing to embrace it, Solvency II represents a significant opportunity to enhance business performance and acquire a competitive advantage.
The Challenge
The opportunity, however, requires changes to the insurer’s operating model, the way the insurer is governed, the way that data is used, the processes it uses, and the way its people think and behave.
Solvency II presents an insurer with a number of key challenges, including:
- Embedding a culture of risk-based decision making to generate greater value for all stakeholders.
- Gathering more detailed, accurate and timely information about the risk sensitivity of their portfolio, and aligning IT infrastructure to cope with these new demands.
- Complying with transactional feeds for capital requirements calculations and risk reporting. Legacy systems and feeds from finance systems are not generally sufficient for Solvency II compliance.
- Deciding on the level of change the organisation is prepared to take on, based on ambition and financial benefits.
- Extending compliance beyond actuaries, to involve risk, IT and finance. Solvency II must be setup as a multi disciplinary programme.
- Having governance and controls in place to measure, monitor and manage progress and dependencies, both internally and externally.
Our Solutions
Atos provides an end-to-end service that offers insight, expertise and practical tools to those prepared to seize the opportunity. We understand the dependencies between the various processes, systems, people and external forces an organisation deals with.
Solvency II will impact upon many areas of an organisation, from finance, to risk, to IT, to customer services. We advocate a holistic approach to aligning initiatives with the overall Solvency II objectives. However far your vision takes you, we have tools and solutions that have been tested in interventions such as BASEL II, Sarbanes-Oxley and LAUTRO.
We can apply these to help you digest the implications of Solvency II, to communicate and report with all stakeholders, and to build a practical approach to managing both content and processes.
Atos’ end-to-end solutions will allow you to assess the implications of Solvency II, and provide you with methodologies to measure and manage your progress – against both compliance and your strategies for growth.
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