New SimCorp StrategyLab white paper authored by Celent explores Solvency II preparedness

8/14/2012 9:00 AM EST

SimCorp A/S
Press release

New SimCorp StrategyLab white paper authored by Celent explores Solvency II
preparedness

Using European insurers complying with Solvency II as a backdrop, new paper
offers considerations for global financial organisations confronting increased
regulation. 

SimCorp StrategyLab, an independent research institution sponsored by SimCorp,
has released a white paper entitled: “Preparing for Solvency II: Three key
questions insurers need to address early.” The paper outlines how insurers can
prepare for Solvency II and what key steps need to be taken by firms to audit
their infrastructure and move towards preparedness and compliance. 

Authored by Nicolas Michellod, Senior Analyst at Celent, the paper states that
Solvency II remains a highly political work in progress, creating challenges
for European insurers who are looking to prepare for and comply with the raft
of new regulations. The paper outlines the process insurers should undertake to
examine whether their infrastructure is well-positioned for Solvency II
compliance. Firms should consider the benefits of choosing a best-in-class
solution, the pros and cons of insourcing versus outsourcing, and how to
leverage existing investments and resources. 

Michellod points to the potential benefits of working with a best-in-class
provider with expertise and understanding of the regulatory environment and
risk management: “Maximising existing hardware and software is an advantage of
the build approach, but doing so may well encourage suboptimal decisions in the
design of the application. Experience shows that a customised solution
typically has a longer implementation time, greater risk of failure and is
unable to benefit from innovation driven by a vendor.” 

The paper highlights the ongoing struggle for insurers with regulatory
constraints, the ever-changing Solvency II roadmap and the data management
complexity of monitoring all risk categories. Insurance companies can look to
external support, including experienced solution providers, to navigate these
issues. 

The paper concludes by recommending that insurers seek IT vendors that
demonstrate: 

  -- Capability in understanding insurers’ preoccupations and feedback
  -- Ability to quickly adjust their Solvency II solution
  -- Ability to implement new releases

Lars Falkenberg, Assistant Director of SimCorp StrategyLab, explains,
“Complying with Solvency II is crucial for insurers, but they are not alone in
facing an increasingly constrained regulatory environment. Beyond insurers,
asset managers, pension funds and more are dealing with global compliance
challenges. Internal IT infrastructures may work, but these organisations need
to ask themselves the hard questions in determining whether these solutions can
truly keep them ahead of the regulatory curve in this ever-changing
environment.” 

To download a copy of “Preparing for Solvency II: Three key questions insurers
need to address early,” please visit
http://www.simcorp.com/Knowledge/White-papers/Solvency-II-white-paper. 

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Enquiries regarding this announcement should be addressed to:
Lars Falkenberg, Assistant Director, SimCorp StrategyLab (+45 35 44 88 00).

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About SimCorp StrategyLabSimCorp StrategyLab, an independent research
institution sponsored by SimCorp, carries out extensive research in the
investment management industry to identify and suggest ways to meet challenges
within risk management, cost control and growth opportunities and to share best
practices. The research programme is carried out in close collaboration with
internationally recognised academics and established industry experts. More can
be learned about SimCorp StrategyLab at www.simcorpstrategylab.com.