In the Solvency II world, there will be increased focus on management reporting and analytics. This is partly driven by Article 132 of the Solvency II Directive, which requires that companies only invest in assets and instruments that can be properly identified, measured, monitored, managed, controlled and reported.
This means fundamental changes to how Risk Management and Compliance functions are carried out and will require an increase in spending on risk and performance analytics in order to improve their capabilities in this area.
QRT reporting, a specific asset-reporting requirement will entail real granular detail, regardless of whether company outsources or manages the fund administration internally and asset-reporting solutions around risk and reporting data will be key to meeting this requirement.
Continue reading “More Spending Required for Life Insurers to Meet Pillar 3″ at Actuarial Post and view the full report by FRS Invest Pro HERE.
In a poll of 77 senior executives, including chief actuaries and chief risk officers working in the UK general, life and health insurance markets, Grant Thornton found that almost two-thirds (65%) believe the value added by the new requirements will not justify the expenses incurred.
Three-quarters considered the costs of Solvency II to be disproportionate, while only 6% of respondents believe the costs to implement the new regulation is reasonable.
Simon Sheaf, head of actuarial and risk at the firm, said: ‘Increasingly, the sector is begrudgingly accepting Solvency II as a “necessary evil”, and recognising that it will bring some benefits.
Continue Reading “UK insurers regard Solvency II ‘as a necessary evil’” at The Actuary News
Zurich Insurance has deployed a mobile business analytics tool to help minimise the complexity of meeting insurance industry regulations and ensure transparency of its operations.
The iPad app was developed in a few weeks using Microstrategy’s Mobile platform, integrating internal reports and Solvency II data to aid compliance with capital risk management rules.
The app allows Zurich Insurance controllers and management staff to analyse yearly trends on global claims data, with dashboards to view information by time period, geography or line of business using actuarial methodologies.
Continue Reading ” Zurich Insurance Deploys Mobile Analytics to meet Complex Regulatory Demands” at Computer World UK News
Insurance companies are well placed to fill a $500bn annual gap between infrastructure investment needs and the lending available from traditional sources such as banks, according to research published by S&P RatingsDirect.
Credit analyst Marco Sindaco in London notes in his latest analysis that there is an estimage of $3.4trn in annual infrastructure investment needs through 2030, and it is to these needs that there is an ongoing gap in funding.
However, insurance companies with long term liabilities can see benefits in ties to infrastruture projects, which are long term in nature, and designed to provide broader economic benefits.
A key question in this relationship arises because of regulatory developments. This causes uncertainty for long term investors, and requires analysis of the impact on the insurance company’s financial strength and capital structure.
However, through additional research involving S&P and the Judge Business School at Cambridge University, it has been found that regulatory developments such as Solvency II in the EU will not necessarily cause problems for insurance companies seeking to invest in infrastructure.
Continue Reading “S&P Delivers Verdict on Insurer role in Infrastructure” at Investment Europe News
Lloyd’s has today published a set of new minimum standards for managing agents, in line with good market practice and relevant Solvency II requirements.
Since the beginning of 2013, Lloyd’s has been working closely with the Lloyd’s Market Association (LMA) and the market to undertake a refresh of all Lloyd’s minimum standards.
The original Lloyd’s minimum standards were developed around 2005 and covered fundamental elements such as underwriting, governance and risk management. Over time, additional minimum standards have been developed to support broader activity.
Continue Reading “Lloyd’s Minimum Standards Align with Solvency II” at Lloyd’s News
Some Gibraltar insurers ‘need to have a wake-up call’ to the threat of Solvency 2, according to a Gibraltarian insurance entrepreneur.
Steve Quinn, founder of Quest Group, which provides support services for Gibraltarian insurers, speaking in Gibraltar International, said he understood the logic of Solvency 2 providing a level playing field, but said implementation had to be proportionate to each firm’s size.
Continue Reading “Gibraltar Insurers Warned they Need a ‘wake-up call’ to Solvency 2 Threat” at Compliancy Services News
Global demand for the services of UK-based actuaries is on the rise thanks to major regulatory change such as Solvency II and Basel II, consultants OAC have claimed.
According to the firm, British actuarial standards are highly regarded throughout the world. It named the UK as the ‘home of the actuarial profession’.
It said the changing regulatory landscape has driven a large amount of international and domestic demand to the sector, giving the enterprise risk management skill-set of the actuary some prominence.
Continue Reading “UK Actuaries in Demand, says OAC” at The Actuary News
The computational requirements of Solvency II are driving the need for more computing power and data storage to be accessible on a scalable basis. Early adopters are leveraging cloud computing for their Solvency II implementations, while others are taking a more cautious approach, waiting for the industry to address key issues such as security concerns.
This survey of insurance risk practitioners, sponsored by IBM, reveals how ‘cloud-ready’ the industry is and the extent to which cloud computing is a part of firms’ implementation strategies for Solvency II.
Solvency II poses an unprecedented technological challenge to insurers. In order to comply with the calculation, analytical and reporting requirements spread across all three pillars of the regime in a timely fashion, firms need access to greater computing power and data storage capabilities than in the past.
Continue Reading “Cloud computing and Solvency II” at Risk.net news
Insurance regulators in Europe won’t relax rules designed to protect customers from risks to investments in structures like wind parks and power grids, the head of the industry’s watchdog said.
Gabriel Bernardino’s comments will disappoint insurance companies, which say the rules will deprive them of a new area of investment that is helping them offset low returns on fixed income, the traditional repository for customer assets. European insurers manage about 8.4 trillion euros ($11.4 trillion).
Continue Reading “Wind Parks, Grids Pose Pose Political Risks for Insurers” at Bloomberg news