While spreadsheets will remain an important tool under Solvency II, they can be inherently difficult to control. Reducing dependence on spreadsheets will therefore be the first priority under Solvency II, though eliminating them altogether is likely to be unfeasible.
How can you manage the risks more effectively?
A move away from the adhoc way that spreadsheets are generally used today towards the more systemic framework for deployment and control generally applied to IT systems is crucial. This includes identifying potential risks and building the necessary controls into the overall capital evaluation process. It will also be important to look at how these controls can be documented and opened up to effective third party scrutiny and verification.
PwC is helping a range of insurers to get to grips with the practicalities of Solvency II implementation. If you’d like to know more about how to manage spreadsheet risk more effectively, please contact our specialists on the right of the page.