Insurers must be prepared as Solvency II approaches
Insurers must be prepared for Solvency II with just 100 days until its implementation, according to data specialist Silverfinch.
The firm said that insurers must have the necessary agreements in place with the asset management firms which will be providing look-through data on their investments.
Silverfinch is also urging insurers to review their service level agreements or non-disclosure agreements with both rating agencies and data vendors.
John Dowdall, managing director of Silverfinch said: “It may have taken us an awfully long time to get to this point on the runway, but now the ground is staring to run out beneath our feet.
“100 days does not leave insurers or asset managers long to finalise arrangements. But the good news is that there is still just enough time to prepare for the need for look-through data and put a process in place. – assuming everything runs smoothly.”
Under the Solvency II legislation, which takes effect from January 1, 2016, insurers will need to provide highly granular look-through data each month on all of their invested assets in order to assess the degree of risk to which each asset is exposed.
“For those insurers who’ve taken all the right steps so far, they key now is to ensure that all the necessary contracts are in place. This will limit the chance of disputes blowing up post-January 2016,” said Dowdall.
