Solvency II


Solvency II (SII) continues to provide challenges as the main regulatory regime within the EU and our team has proven experience in solving these challenges.

With SII in force, insurers have now the opportunity to improve their models, optimise capital positions, and increase process efficiencies.


We will work with you to introduce suitable process improvements to keep up with the tightening reporting deadlines both of quantitative and qualitative reports.

We have experience in all aspects of SII:

  • SFCR and QRT Reporting

  • We can help firms produce SII results, drawing on our team’s experience with both Standard Formula and Internal Model calculations and with producing quantitative and qualitative Pillar III reports.

  • Internal Model Development

  • Insurers on the Standard Formula, particularly those writing long-term life insurance business, may see significant capital reductions by moving to a Partial or complete Internal Model approach.

  • 4most has extensive experience in the development of internal models and can help firms design, implement, and validate new internal models.

  • ORSA & Model Validation

  • Alongside new capital requirements, SII has required insurers to enhance internal control processes via the ORSA and model validation requirements.

  • We can help firms establish, validate, and document ORSA processes, and our team has extensive experience in performing Solvency II model validation for a wide range of clients.

  • Capital Optimisation

  • Ahead of implementation many insurers focused their efforts on ensuring compliance with the SII standards. Now that reporting processes have been established, attention can be turned to optimising capital positions.

  • We are able to support firms in exploring a wide variety of different potential management actions to optimise the balance between profitability, risk, and capitalisation.

  • Process Improvement

  • Insurers’ reporting teams are facing tightening deadlines under SII and significant upcoming changes to meet IFRS 17 requirements.

  • We can help firms review reporting processes to identify the critical path, optimise workflows, and leverage work between SII, accounting, and internal management calculations.

  • We would also aim to automate data collection and valuation processes as far as possible to reduce reporting times.

  • Regulatory Developments

  • SII is an evolving standard which will be reviewed by the European Commission on an ongoing basis. Local regulators have also begun adjusting their guidance to firms on interpretation of specific points of the rules.

  • We can help firms assess the impact of proposed changes to the SII regulations on their business, as well as developing and validating any required model changes.

 

For further information, please contact one of our Leadership team, Ramesh Indran: ramesh.indran@4-most.co.uk or Chintan Patel: chintan.patel@4-most.co.uk.


 
 

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