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Solvency II

Purpose

Solvency II is the future European solvency regime for the insurance industry based on the following principles:

  • Basel II three-pillar structure adapted to the insurance sector,
  • Move away from one-fits-all approach to an approach geared to the risks to which companies are exposed; it encourages companies to measure and manage risk,
  • Take into account the risks associated with the company’s organisation and management approach,
  • Provide sufficient capital in order to reduce the risk of ruin to an acceptably low level and hence increase the level of protection to policyholders,
  • Encourage dialogue between the companies and the regulator,
  • Make allowance for subsequent adaptation to international prudential and accounting developments.

Deloitte services offering

Quantitative Impact Study 5

QIS5 is one of the latest studies organised by the CEIOPS to analyse the impacts of the new regime on companies. To accelerate and help clients to achieve this objective, we developed:

  • A data request and Excel based tools to support actuarial computation,
  • Specific trainings.

Furthermore, we have gained strong experience through supporting a number of large companies during the QIS5 exercise.

Gap analysis and project management

Solvency II regimes represent around 3000 pages of documentation covering all aspects of the organisation. It’s a big challenge to translate those texts into clear and manageable actions and define the right level of sophistication. We developed:

  • A gap analysis tool including a mapping of all articles into logical topics, with an understandable summary of the requirements and specific questions to assess your degree of readiness,
  • A view on the data set required to compute the SCR and for the reporting,
  • A set of dedicated trainings (e.g. Capital Planning, etc.),
  • Processes to support the IT changes (e.g. change management, testing strategy, etc.),
  • Detailed methodologies for the design phases (risk appetite methodologies, etc.).
Solvency II market survey

Solvency will definitively impact your IT architecture and infrastructure led by Pillar 1 requirements (SCR computation), Pillar 2 requirements (stress testing, capital planning) and Pillar 3 requirements (produce external reporting – around 1500 fields).

In 2009 and 2010, we conducted a large market survey covering all foreseen impacts in terms of technology. We screened and evaluated 20 vendors using around 500 questions and Demos. For each vendor, we created an executive summary (validated by them) containing the coverage solutions, the key strengths and key challenges.

The results of the Deloitte market survey can help you by:

  • Providing a clear view on what solutions the market has (or does not have) to offer,
  • Speeding up your selection process by focusing on only solutions relevant to your needs,
  • Accelerating the collection of requirements for the request for proposal based on our standardised list (questions used within the survey can be easily adapted to your specific needs).

Focus on

  • ExternalURL
    Solvency II
    Deloitte can provide the multi-disciplinary approach that ensures all aspects of Solvency II requirements and opportunities are considered
  • Solvency II - Anticipating issues, capturing benefits
    Solvency II challenges joined by the expertise of Deloitte

More Learn more

  • Pathfinder - Deloitte monthly regulatory update - February 2014
    AIFM. CRD IV / CRR. Central securities depositaries. Credit ratings. EMIR. EuSEF. SEPA. Solvency II. PSF - Authorisation. SRM and Single bank resolution fund.
  • Pathfinder - Deloitte monthly regulatory update - March 2014
    AIFM. CRD IV / CRR. Deposit Guarantee Scheme. European Cooperative Society. EMIR. Insurance - Annual return. Insurance - Complaints-handling. Reinsurance - Annual return...
  • Pathfinder - Deloitte monthly regulatory update - December 2013
    Alternative investment fund managers. Capital requirement (CRD/CRR) and liquidity coverage ratio (LCR). Insurance intermediaries in handling complaints.
  • Pathfinder - Deloitte monthly regulatory update - November 2013
    Alternative investment fund manager (AIFM). Insurance brokers.Key information documents for packaged retail investment products (PRIPs). Solvency II and Omnibus II Directives.
  • Solvency II – Own risk solvency assessment | Deloitte solution
    Our assistance ranges from full implementation of the various components of Pillar II to design of specific components, to a role of "ORSA coach".

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