PA Consulting Group launches survey on how prepared the industry is for Solvency II.
Only half of insurers understand the full impact of Solvency II and less than a third have adequate budget in place to complete the programme, according to PA Consulting Group’s latest survey of insurers.
After a long period of uncertainty, 1 January 2016 is now the proposed date for implementation, as was correctly predicted by nearly three quarters (74 per cent) of insurers. Despite this, fundamental issues remain for the industry to be ready in time. Across the three pillars of the directive, the challenges our survey highlighted include:
The biggest overall delivery worry for insurers is further change to the timetable or requirements, followed by the availability of operational staff.
Commenting on the report, Asesh Sarkar, PA Consulting Group insurance expert, 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.
“Delivering programmes as business-as-usual is a workable approach, but firms cannot afford to lose sight of the areas where more rigour and control are required or they risk costly failure.”