2009-10-27

By Editor, CIR

This week represents a milestone in planning for Solvency II, as it exactly three years away from the deadline for Solvency II preparations.

"Solvency II represents a major overhaul of the regulatory framework for European insurance and is likely to be the number one priority for insurance companies over the next few years. Many insurers are already in the process of mapping out the steps they'll be taking to prepare in time for the implementation deadline: 31 October 2012."

The main challenge, he says, will be for the affected company to develop their plans whilst the details of the new framework are still being worked out. "Earlier this year the high level principles were agreed and since then we have seen over 1,500 pages of consultation on the details of the new framework with more to come later this year. The information in these consultation papers all needs to be factored in planning for the next three years," added Persad.

"Additionally, many companies will face challenges in locking in the required skilled risk management and actuarial resources, upgrading of systems and tools to be used and training management on the implications of the new regime. In particular, Solvency II goes further than current regulation as the focus extends beyond calculating numbers for supervisors and includes measures to ensure that companies are using risk information in the day to day management of the business."

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IUA: banking and insurance policies must be different
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IUA: Don't 'gold-plate' Solvency II
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