Asesh Sarkar, an insurance expert at PA Consulting Group, is quoted in an article in Captive Insurance Times. The article looks at a survey conducted by PA on how prepared insurers are for Solvency II.
The article reports that only half of insurers understand the full impact of the regulation and less than a third have adequate budget in place to complete the program, according to the survey of insurers.
The article reports: “The survey found that two thirds of insurers do not expect to be ready to meet EIOPA’s preparatory guidelines on the System of Governance by January 2014. Although the guidelines are preparatory and there is no need for a costly or rushed implementation, firms must immediately build a credible plan to achieve compliance.
“Four out of five insurers questioned expect reporting to start by mid-2015 and almost all expect to be ready in time."
Asesh says: “As insurers and regulators prepare to step up their Solvency II activity, firms need to ensure their activity – and their budget – is focused in the right places. This means taking a hard look at the value of internal models and ensuring they are investing enough in IT to prepare for Solvency II.”
You can read the full article here.
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