PwC says the directive gives the industry a chance to gain competitive advantages

PwC has told the insurance industry not to “waste” an opportunity to gain a competitive edge using the upcoming Solvency II directive.

PwC partner Chris Garnsworthy said the directive is an opportunity for insurers to change how investors, analysts and policyholders perceive the security and value the sector adds but many insurers are becoming waylaid by what they need to do to comply.

“It is understandable that technical details and the cost and upheaval of compliance are top priorities, but there is a real danger insurers might lose sight of the strategic impact of Solvency II. Many insurers will need to rethink where and how they want to compete, as there will inevitably be aspects of some businesses that no longer make sense,” said Garnsworthy.

“It is worrying that we are hearing about people being taken out of product design and innovation to work on compliance as Solvency II offers the chance to stand out from the pack,” he added.

Garnsworthy said: “Solvency II will be a catalyst for managing risk and capital more efficiently and is a real chance for the industry to send a clear message to the markets that it can respond swiftly and decisively to opportunities.”