Ireland

Solvency II 

With much more certainty now over the Solvency II timetable, the challenge for insurance companies is to cost-effectively embed the processes and systems that have been developed cost-effectively over the next two years. What needs to be done? How can this be completed as efficiently as possible, while minimising external spending?

We believe there are four key areas for companies to focus on:

 

  • Stress and scenario testing (SST) – building out the understanding of the implications of SST and Reverse Stress Testing (RST) to give insight to senior management
  • Forward Looking Assessment Risks (FLAOR)/Own Risk and Solvency Assessment (ORSA) development – embedding the ORSA processes to be truly part of business as usual
  • Pillar Three – given the pressures on reporting functions, it will be important to make reporting processes as efficient as possible
  • Strategic SII development – the near-certainty of SII now means that business processes like product development and portfolio mix should be analysed to consider the new regime’s impact

 

A proportionate and pragmatic approach

We think it is important to recognise there is further business and regulatory change affecting companies and so a proportionate and practical approach is vital. We believe insurers who take a holistic approach will be best-placed to achieve long-term sustainable value creation, which their investors will reward.

 

Preparatory guidelines for Solvency II

EIOPA has published Preparatory guidelines for Solvency II; download the relevant documents below.

 

 

How we can help

Our insurance practice provides insurers with the entire range of Solvency II project support. This varies from actuarial and risk specialists to advice on changing reporting processes and improving risk culture.

 

Get in touch today and find out how we can help you.

 

Insurance contacts

liam lynch, partner

Liam Lynch

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Partner & Head of Insurance

liam.lynch@kpmg.ie

+353 1 410 1734

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hubert crehan, partner

Hubert Crehan

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Partner & Head of Financial Services Audit

hubert.crehan@kpmg.ie

+353 1 410 2629

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