Through the Solvency II directive, the EU has reformed the rules that apply to insurance companies. The purpose is, among others, to strengthen the relationship between solvency requirements and risk-taking, provide better consumer protection and to create a single European financial market.
The directive entered into force on January the first of 2016, with some certain transitional rules and some exemptions for small insurers. Among others, the new rules include:
- Quantitative requirements for calculation of capital, such as the new valuation rules for solvency balance sheet, risk-sensitive capital requirements, principle -based rules on investments, more sophisticated capital requirements that are tailored to the individual company’s risk level.
- Qualitative requirements on corporate governance, risk management and internal control and oversight, such as more explicit demands on the systems and processes for the management of all types of risk, requirements to regularly make their own assessments of capital requirements, and to apply a more harmonized and proactive supervision
- Requirements for reporting and disclosure of information. Through an increase in reporting of various kinds, the intention is to make it easier for all stakeholders to assess an insurance company’s actual situation.
FCG provides the following services in Solvency II:
- Consulting and training
- GAP-analysis and Implementation
- Project Management
- Resource Support and Outsourcing
- Analyses and Calculations
- Controls and Validation
- Qualitative and quantitaive reporting
- Audit and second opinion