How are asset managers preparing for Solvency II?
Progress to date
A significant number of asset managers describe themselves as being engaged in Solvency II, yet may not have the fundamental components in place.
Our survey revealed that the main reason for not having a program is a lack of client requests. This highlights the need for insurers to engage more with their asset managers. This is perhaps surprising, given that Solvency II is a regulation with which call European-based insurers must comply.
- 64% of respondents have a Solvency II program under way, in most cases with budget allocated.
- 18% do not have a program or intend to deploy one. It is difficult to view this latter group of asset managers as being anything other than disengaged.
- Overall findings suggest that asset managers still view Solvency II from a compliance perspective as opposed to a potential revenue opportunity.
In terms of engagement with insurance clients, the response is predominately moderate. This conflicts with findings where more than half of respondents described their approach to Solvency II as proactive.
If we consider all the tasks assessed, the overall evaluation is low to moderate, with only the identification of data requirements rated as high.
Asset managers need to accelerate their progress as we move into 2013. Our survey indicates that the majority are still in the early stages of preparation in a number of areas.
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