Solvency II will establish a completely new regime within the EU for the supervision of the insurance industry. Companies will have to consider various requirements founded on a holistic concept for risk management. This results in changes for the way required solvency capital is being determined, governance systems are set up and particularly establishes extensive reporting requirements. Insurance companies have to review and align their methods, organization and processes as well as the underlying IT systems.
Successful implementation of Solvency II is essentially based on the holistic understanding of the regulatory requirements across all pillars. As part of the implementation measures links and interdependencies between the different standards have to be identified, being a prerequisite for an efficient, timely and sustainable realization. Reporting requirements and its preparation are coming more and more to the fore. These have to be connected with regards to process and content with the quantitative data of pillar 1 but also linked to the activities of pillar 2 (i.e. ORSA). BearingPoint helps its clients make Solvency II not only being a concept but also mastering the transformation into operation.