New survey shows 75% of insurers don't believe industry is on track to meet new compliance rules
Insurers regard Solvency II as a bigger risk than hurricanes, according to a new survey from IT consultancy Northdoor.
The survey of 38 insurers found that nearly two-thirds (58%) of respondents believe that Solvency II represents a bigger risk to their business practices than hurricanes.
Other significant findings of the survey include:
- 26% think the industry isn’t on track with Solvency II compliance – 45% aren’t sure
- 71% think Solvency II implementation will actually help their business model
- 35% of respondents say their company has spent less than £250k so far on Solvency II – 13% said they’ve spent between £250k-£500k
- 29% say they expect to spend a further £250k-£500k on compliance – 6% expect to spend a further £1m or more.
Director of consultancy Rob Stavrou, at Northdoor, said: “The fact that the industry sees Solvency II as on a par with hurricane season shows that this really is the big issue in the market right now. Companies have made good progress – but there is still more to do – and it’s worrying that nearly 75% of respondents didn’t know or weren’t sure whether the industry was really on track with compliance. Solvency II requires a focus on three key areas – data, processes and technology – and companies really need to keep that in mind as they move forward with their progress towards compliance.”