March 2015 - Nine months to prepare for Solvency II

Solvency II: prepare now for Pillar 3 reporting

Solvency II is due in nine months and yet the need for action does not appear to have reached all insurers and asset managers

Under Solvency II, with an implementation deadline of 1 January 2016, insurers are obliged to reveal details of the funds in which they invest. This means that the managers of these funds will need to disclose more detailed information to the insurers (the look through principle). For asset managers, this disclosure and subsequent information dissemination will bring challenges and increased complexity.

On 12 March Silverfinch, who has partnered with Fundsquare to provide a look-through and data utility for Solvency II, hosted a conference on the issues facing both asset managers and insurers as the deadline for Solvency II approaches.

The clear and consistent message at the conference was that the time for talk is over; now is the time for action. Insurers need to start talking to asset managers to make sure both parties progress.

It was noted that French authorities had done a test last year and estimated in advance that 80% of insurers were ready for Solvency II, only to admit that the figure was closer to 20% after the exercise had taken place.

Also during the conference, the results of the survey that Silverfinch carried out with EY were presented.

Key findings of the survey were:

• More than half of the asset managers surveyed thought it would take more than three months to set up a system for the regular provision of customized data.
• About 70% of asset managers surveyed plan to use their interaction with insurers in relation to Solvency II as an opportunity to increase their market share of European insurance assets.

Silverfinch has published a summary of the issues discussed at the conference and the conclusions reached on their blog.
 

The Silverfinch and Fundsquare solution

Silverfinch and Fundsquare are today working with insurers and asset managers and offer a centralised connectivity infrastructure.

For more information on how Fundsquare and Silverfinch can help for Solvency II, visit www.silverfinch.com or contact Paolo Brignardello of Fundsquare (+352 28 370 528, [email protected]) or John Dowdall of Silverfinch (+353 1 671 6911, [email protected]).

_{Published on: 31 March 2015}

Fundsquare News 18 - March 2015