Implications for your firm

IMPLEMENTATION STEPS

Key message from the Financial Regulator
The letter issued by the Financial Regulator in August 2009 contains three key messages:

Solvency II will bring significant changes to the Irish and European regulatory requirements.
Insurers should be making effective implementation plans now.
The Board and senior management are responsible for making it work.

The Financial Regulator is clear that the implementation of Solvency II is a Board and senior management responsibility. The Financial Regulator has gone so far as to require of firms the names of the individuals charged with implementing Solvency II within each firm.

What should the board be doing now?

Initiate Board level discussion on the implementation strategy for Solvency II.
Nominate the individual to be responsible for the Solvency II implementation.
Review the benefits case between an internal model and the standard formula approach and make a decision on the future direction.
Start to assemble a project team with representation from at least finance, actuarial, risk and IT.
Initiate a gap analysis to define the key requirements and identify the scope of work required to meet your future objectives as a first step of the implementation plan.
Review existing systems of internal control and determine necessary documentation requirements.
Consider the requirements of the Own Risk and Solvency Assessment and the likely impact of its findings.
Seek advice from industry experts.

We believe that these are all sensible steps which will help Irish insurers, not only to manage their Solvency II programmes more effectively, but also to better identify and take advantage of the potential competitive advantages that Solvency II can bring.

How can Compliance Ireland help?

Board and Management briefings, to assist you in understanding the implications of Solvency II for your business.
Advice on regulatory expectations of a sound internal controls system.
Assistance in defining and documenting internal controls and procedures.
Reviews of your documentation as you prepare to migrate towards Solvency II.
Assistance in scoping and preparing your Own Risk and Solvency Assessment.