This is the fourth edition of Countdown to Solvency II. It features articles on UK and German regulation, project management for multinationals, data and systems, and governance. Here's a short resume of each article:
As the development of Solvency II moves from legislation to the practicalities of implementation, initiatives being put in place by the UK FSA and German BaFin provide important insights into how the directive is likely to be applied.
For large multinational insurers, the already daunting task of preparing for Solvency II is likely to be heightened by the diverse nature of their operations and extended lines of command. However, the directive also offers valuable opportunities to enhance the quality and consistency of management information and streamline the operational infrastructure of the group.
Solvency II is likely to require a substantial increase in data gathering and computational capacity within many European insurers. The good news is that by leveraging enterprise risk management (ERM) capabilities and aligning the implementation of new information systems with developments in financial reporting, firms could not only reduce costs, but also deliver more of the benefits.
Solvency II is set to impose extensive governance requirement for insurers of all sizes. Although some insurers may opt for straight compliance, this may miss a valuable opportunity to strengthen stakeholder confidence and provide greater assurance for the board.