Guy Carpenter Publishes Second Part of Re/Insurance Industry’s Guide to Succeeding Under Solvency II
- The rigorous corporate governance programs that (re)insurers will need to implement under Solvency II, covering the core functions of risk management, actuarial, internal audit and internal controls.
- Expectations under the Pillar II requirement of every company conducting its “own risk and solvency assessment” (ORSA).
- The internal model approval process as an alternative to using the standard formula to determine a company’s solvency capital requirement (SCR).
- The two levels of disclosure - regulator and public - required under Pillar III.
- Catastrophe modeling documentation requirements for Solvency II compliance.
Peter Stubbings, Managing Director, stated, “Directly or indirectly, Solvency II will change the insurance industry worldwide. As the industry’s authority on Solvency II, we are helping clients prepare for the challenges and opportunities under the new regime. Mastering Pillars II and III goes beyond mere compliance - it can translate into a competitive edge in the market where there are few operational opportunities to stand out.”
Claude Lefebvre, Head of GC Analytics - EMEA Region, added, “Final implementation measures for Solvency II are still being discussed and will determine the form and impact of this new regulation on the industry. Nonetheless, it is clear that companies need to address several key issues to ensure that they will be ready for the new regulatory framework. Likely among them is the building and documenting of an internal model that is embedded within an organization’s enterprise risk management structure to meet the Solvency II use test requirements.”