Data and IT readiness
European Solvency II survey
A comprehensive database is the key precondition for fulfilling Solvency II requirements.
Progress in data quality management is relatively weak and requires more attention. In defining data integration standards and their applications across group and external partners, 81% of insurers are not fulfilling the requirements.
Nearly 69% of European insurance companies have met none or only some of Solvency II data requirements. Weak progress is observed in defining data integration standards, with only 19% of insurers close to being compliant. More than half (57%) are meeting at least most of the requirements that identify Solvency II reporting source data. Clearly, there is a gap in defining data integration standards, integrating multiple, complex IT systems and applying them effectively.
Efficient data quality management through a flexible, dynamic infrastructure is a big issue. A comprehensive database is the key precondition for fulfilling Solvency II requirements. However, effective data and information management will also be a competitive challenge. Data availability and data content quality will play a key role in integrated data management processes and must be interlinked.
IT governance and infrastructure must be adapted and aligned on a group-wide level. This will allow for multiple sourcing of operational procedures and IT systems. Our survey reveals that 37% of insurers have implemented most IT readiness requirements. The greatest effort remains in locking down end-user computing to manipulate data, where 73% still have work to do.
Positive steps create new concerns. Firms' slow progress in implementing appropriate ownership, governance and controls around key data and Solvency II systems will leave companies open to challenge from regulators. Shifting EIOPA deadlines have offered excuses, but these gaps now require prompt attention by IT and business functions.