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Leveraging Solvency ll to empower risk management 

The delay in implementation of Solvency ll has received a mixed response from insurers across Europe. While significant investment has been made by the industry to meet the regulatory requirements, insurers should not feel discouraged by the recent delays, but rather view this as an opportunity.
Leveraging Solvency ll

Efforts by insurers to comply with Solvency ll have led to the development of enhanced risk and capital frameworks, and a greater understanding of business risks.


While there is still much work to do on Pillar 2 aspects of the regime, from Own Risk and Solvency Assessment (ORSA) to generally improving risk practices in the business, insurers would benefit from turning their focus to integrating risk management across the organization and business processes. The subsequent delay in Solvency ll’s introduction, now provides an opportunity for insurers to:


  • Evaluate the efficiency of enterprise-wide risk management and improve the integration of the different elements.
  • Take stock of developments and reassess the value that such processes and applications may have across the business.
  • Embed the new practices into established processes – arguably, a key consideration which hasn’t necessarily been the focus for many firms to date.
  • Understand which elements of risk management are value-adding and capable of providing the insights to optimize commercial management of risk and capital going forward.

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How can KPMG help

KPMG professionals help insurance firms design their capital management framework, investigate potential future asset and hedging strategies and design the most capital efficient products. We can bring external expertise from across the insurance industry, coupled with investment specialists to help clients.


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