The Solvency II Directive is an excellent example of an industry-wide, regional business transformation initiative that sets out new, stronger EU-wide requirements on capital adequacy and risk management for insurers with the aim of increasing protection for policyholders. The strengthened regime should reduce the possibility of consumer loss or market disruption in insurance.
Solvency II will be adopted by all 27 European Union (EU) Member States plus three of the European Economic Area (EEA) countries. As a consistent European standard, Solvency II should help to protect policyholders' interests more effectively by making firm failure less likely, and by reducing the probability of consumer loss or market disruption. It should also make it easier for firms to do business across the EU as the current patchwork of varying local standards, established to supplement Solvency I, will be replaced by more consistent requirements.
Our Compliance Consultant comments that there are many aspects of the Solvency II implementation that are of interest … in some cases it will create consolidation in the market through merger and acquisition activity, in all cases it will require careful and sensitive change management. However, none of this can be achieved without careful programme, risk and change management activities. In addition, it is essential that the organisation fully embraces the need for this change and properly embeds the associated changes needed in day-to-day behaviour … at all levels of the organisation.
Working with an experienced Compliance Consultantwill help you successfully implement the requirements of the demanding SolvencyII legislation whilst at the same time, taking advantage of the many opportunities associated with these changes.
