Article posted on www.insuranceerm.com on 15th May 2012
To achieve this and satisfy Solvency II’s requirements on data transparency, companies must revisit all their systems and manual processes. Martin Philpott spells out the challenges involved.
The January 2014 deadline for Solvency II, set to impose significant demands on risk and capital management disclosure, is rapidly approaching. The third pillar of this legislation, which covers public and regulatory reporting and is designed to enhance market discipline, is often seen as a postscript to the first two, and deprioritised when it comes to implementation. Uncertainty over Solvency II’s official start date is a key contributor to this – a recent survey revealed that over 75% of insurance companies believe Solvency II implementation will be delayed beyond the intended start date. It also showed that most companies have been focusing their compliance efforts to date on pillar one – this is potentially a dangerous approach, the three pillars must go hand in hand, and businesses cannot afford to leave themselves too little time to translate the complex data requirements outlined in Pillar III into clearly defined functional requirements.
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