In our previous blog, we discussed some of the Solvency II challenges to regulators and carriers. Following on from this entry, we have looked at the implications for Enterprise Risk Management strategies as part of Solvency II.
A report out late in 2010 by Towers Watson said that the impending implementation of Solvency II and the increasing expectations among rating agencies were driving insurers to continue to bolster their enterprise risk management programmes.
In its sixth biennial insurance industry ETRM survey, Towers Watson said that Solvency II remained the primary focal point for European insurers, and implementation challenges are becoming more evident and that Solvency II is expected to dramatically change many aspects of Europe’s insurance market.
Towers Perrin said that Solvency II brings an increasing focus on all aspects of risk management within companies. It makes a direct link between risk and capital requirements and this will have far reaching implications of the organisation including product design, pricing, hedging and reinsurance and capital optimisation.
There are also innovative options within Solvency II which will allow companies to make use of their own internal models for regulatory purposes, subject to meeting certain strict regulatory criteria. These have the potential to provide competitive advantage for organisations through more tailored risk measurement and management.
At Eurobase, we have been working with our insurance and reinsurance clients (and potential clients) to help them use IT to help with risk management.
The way you share, view and store your data – and produce reports – can really help with risk management – at the click of a button you can see where you are with your claims or policies and take a good look at your lines of business through tailored reports.
Our Synergy system is specifically designed for insurers and reinsures and provides real-time monitoring of risk exposure, with automatic exception flagging. It also provides secure access to critical business information for users, their customers and business partners. Based on multiple levels of authorisation, the system ensures maximum user control while offering powerful graphics and reporting functions that deliver a clear understanding of the reinsurance business profile.
So, if you are serious about risk management, then make sure your IT is up to scratch.
We’d love to hear your comments