Grant Thornton is warning that one in four insurers are not ready for the reporting and disclosure requirements of Solvency II which will be introduced at the beginning of next year, with very little time left to complete their preparations
A GT survey of senior insurance executives about Solvency II Pillar 3 requirements found 77% of respondents expect their firm to be ready before the new regime goes live on 1 January 2016. Of the rest, 5% predict they will not be ready (5%) and 18% are unsure.
Grant Thorton warned that the number of affected companies who were not ready for the new rules was a a ‘significant minority’ of around a quarter of insurers.
The majority of respondents (93%) believe that Pillar 3 requirements are either onerous or excessive, and 98%. identify the quantity and granularity of the information required, along with the resources required in compiling this information, as the biggest challenges. Nearly all (92%) are concerned about the reporting deadlines.
Simon Sheaf, GT’s head of general insurance actuarial and risk, said: ‘In spite of greater engagement with Pillar 3, there are still some significant issues for insurers to address. It is clear that producing information in the detail required is a major challenge, as is meeting the very demanding reporting deadlines. These challenges are exacerbated because it appears that a lack of resource is hindering insurers' ability to prepare effectively.’
‘Putting off Pillar 3 is no longer an option and effort is required now to ensure that all insurers meet the Solvency II reporting and disclosure requirements.’
GT’s report, Solvency II Pillar Three: the final hurdle, is here: http://www.grant-thornton.co.uk/Documents/Solvency_II_Pillar_3_Survey_2015.pdf
