Have you already developed an effective programme management structure and processes to deal with Solvency II and successfully implemented them?
- Are you sure they’re adequate for the task and enable you to respect Solvency II data quality standards?
- Have you evaluated the effectiveness of your internal controls and validated your approvals processes?
- Have you effectively embedded Own Risk and Solvency Assessment (ORSA) into your organisation?
- Are you able to prepare a Solvency II balance sheet as well as organise external disclosure, leveraging International Financial Reporting Standards (IFRS) for insurance contracts (phase 2)? Under Solvency II, establishing an appetite for risk is a key business management tool.
Solvency II entered into force on 1 January 2016 and establishes a revised set of capital, risk management and disclosure requirements for the European insurance industry.
Solvency II has a risk-based, forward-looking regulatory focus founded on a 'total balance sheet' and market-consistent approach, and obliges industry players to make some significant and challenging changes. How ready is your business?
How PwC can help
PwC audits and advises many insurance companies with respect to Solvency II. We’ve found that while most have invested significantly in its implementation, they still need to make sure the calculation process is well-controlled. You also need to make sure that when you communicate your Solvency II ratio, you communicate the correct ratio.
If the process isn’t well controlled, you could face operational risk… and capital add-ons… but there may be opportunities to boost your business too!
We can help you identify these opportunities, for example, by enhancing the quality of other key management information used to run and develop business.
We can also help you more efficiently provide assurance to stakeholders that the Solvency II ratio communicated is valid. It’s likely that the Solvency II ratio you declare will need to be audited by your statutory auditor; strong processes, internal controls and data quality will allow the auditor to gain assurance efficiently that the given Solvency II ratio is legitimate.
Many stakeholders, such as analysts and policyholders, will be interested in what you communicate about your Solvency II ratio, and related information.
Our multi-disciplinary and multi-jurisdictional team of professionals can help you get it right.
Contact us
