11 January 2010
Published in: Software, Regulation - supervision
Modernization will impact insurers’ Solvency II strategy
Solvency II and modernization are interdependent issues and will be the biggest challenges for the London Market in 2010, Dave Matcham, chief executive of the International Underwriting Association has predicted.
Matcham believes the way companies implement technology changes will have a major impact on how they deal with both issues: "On the face of it they are separate initiatives - one is regulatory, the other technology and process change," he said. "However, I believe that they are not mutually exclusive."
Matcham said that an estimated 40% of Solvency II implementation costs are related to technology and process change: "This includes modelling software, data warehousing and consideration of data quality. Meanwhile market modernization is a continuous improvement process as technology provides opportunities for further efficiencies."