Given the rapid onset of Solvency II, asset managers who are owned by insurers should consider how to achieve increased look-through of asset data and the ability to extract additional underlying information.
5. The Solvency II principles-based regime takes effect from 2013; asset managers with insurance parents or clients will face more frequent and intensive requests for data for reporting purposes.
Solvency II represents a fundamental review of the capital adequacy regime for the European insurance industry. Not every asset manager will be affected by these measures, but those managers with insurer parents are being pressed to make changes to their systems, and firms with insurer clients may be faced with more data and reporting requests during the months ahead.
The data for Solvency II reporting will need to be captured and available to interrogate at short notice — the end-of-month or quarter-end cycle may not be sufficient. Firms should consider how to achieve increased look-through of asset data and the ability to extract additional underlying information.
In addition to sourcing data, asset managers should address issues around data quality assurance and data governance to ensure they can demonstrate the validity of any analysis. The issue of data storage and retrieval will also need to be considered, particularly for firms outsourcing such components.
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