Solvency II, Implementation and Compliance Case Study
Since the European Commission launched a new set of regulations under Solvency II Insurance companies need to become particularly aware how new regulations will have a significant impact. All UK Insurance and Reinsurance firms must align themselves in response. This new initiative will closely examine the way insurers are required to address internal governance, risk and capital management processes. In essence, Solvency II will establish a uniform and consistent framework for Insurance firms in Europe - creating greater transparency and a level playing field - and transforming the way insurers conduct operations.
Early preparation is key
The proposed date for implementation of Solvency II is 2012. Our experience with other changes of this magnitude indicates that the lead times can be significant. The UK regulator is keen to ensure that insurance companies or insurance units within banks are preparing for capital adequacy now. Even though the new rules are still evolving thorough prepartion will be vital. Obviously additional operational costs are likely to be incurred for compliance. We encourage our clients to perceive this to be an opportunity to gain a competive advantage.
The new mandate will dramatically change how firms allocate, calculate and manage capital, by setting minimum requirements at group and company level.
Sopica is able to help you to understand this new holistic regulatory framework and how it utilises a risk-based approach to establish capital and liquidity requirements.
Our approach
As a risk management consultancy having been engaged by leading Insurers we are in a unique positioned to support your technical requirements of Solvency II implementation and compliance.
A difficult and potentially abortive Solvency II implementation and compliance is frequently due to the over reliance on actuarial models and/or systems.
Sopica experts bring the necessary 360 degree multi-disciplinary approach to your Solvency II project including:
- Risk management (enterprise risk, credit risk, liquidity risk and operational risk)
- Implementation of Basel pillars experience
- Regulatory compliance
- Internal audit oversight
Deep insight into Capital & Liquidity
Our expert consultants have UK and international insurance and compliance company experience in these areas. They are able to create end-to-end projects, serve as ad hoc team members working in harmony with your firm's project teams as technical support, outsourced or in-sourced, short or longer term, as well as conduct in-house training for Board level and senior management and throughout the organisation.
For more information about how Sopica experts can support your Solvency II project please contact info@sopica.co.uk
