For long-term success in meeting the requirements of Solvency II, it’s essential that insurers keep an eye on the future when designing the framework and processes around the internal model architecture.
Don’t assume that existing technology and infrastructure will be able to support and meet all future requirements. As you plan for internal model improvements, be sure to take into account the following five issues:
As your company moves forward with designing the optimal internal model architecture for Solvency II, a number of major structural changes may be needed. Allow at least six months to a year to secure the necessary funding and IT resources required to initiate model architecture projects.