Different degrees

Solvency II will require a massive upgrade in insurers’ technological capability. But as the deadline for implementation looms ever closer, not all in the industry have made the same level of progress.

Solvency II represents a massive step up in the risk and capital calculation and reporting requirements for insurance companies. Not only are there new risk factors that must be measured quantitatively, such as operational risk, but also others that must now be calculated stochastically, while all factors must be aggregated to produce regulatory capital figures. And the whole process must be performed more frequently than under the current regime. While many insurance companies may have been