Solvency II brings new regulatory requirements for insurance firms operating in the European Union. Solvency II introduces economic risk-based solvency requirements which are more sophisticated and enable more customized ways of estimating capital requirements. These updated requirements will force insurers to revisit their current technology stacks and general approaches for maintaining an adequate amount of capital.
Insurance firms must first assess their current state with respect to technology systems and then identify ways to bridge any technology gaps. They will need to determine whether external vendors will be required for implementation. With the Celent Solvency II IT Vendor Spectrum report, firms are provided with an approach for analyzing key questions and considerations. This report will also help firms to select vendors with the right skills to ensure a successful implementation.
As one of the most important initiatives for European insurers, Solvency II requires significant thought and consideration. Identifying the proper balance between internal IT resources and applications and external system providers will be an essential component for success when addressing these new regulatory requirements. A variety of questions should be assessed, including:
- How will insurers address gaps in terms of systems?
- Will outsourcing be required to develop required features? Can infrastructure from IT vendors be leveraged to run data aggregation processes?
- Which vendors should be selected to ensure continuous compliance with legislation changes and requirements in the long-run?
Within this Celent Solvency II IT Vendor Spectrum report, Celent evaluated ABACUS for Solvency II against other vendors from across the globe on multiple factors. Factors included each vendor’s functions and features, technology, implementation and associated costs.
Have you considered your approach in tackling these new regulatory requirements? Contact Celent to obtain a copy of this report and see how ABACUS can help you quickly address Solvency II reporting.