Solvency II Resources Thought Leadership - Ernst & Young - Global

An archive of articles and reports on Solvency II and its impact on the insurance industry.

2011 Publications

Solvency II: Internal model validation
Validation is a vital part of the internal model development and authorization process. It is also a vital step in determining that an insurer's model fits its business and financial management needs. To help management gauge whether their approach is adequately designed, we pose five key questions. Learn more.

Solvency II Equivalence update: EIOPA's October advice
On 26 October 2011, the European Insurance and Occupational Pensions Authority (EIOPA) issued advice on the equivalence assessments of the Bermudian, Swiss and Japanese insurance supervisory systems. How will clients be affected in these regions? We examine their conclusions in respect to the country regimes against these principles and offer insight.

Embrace the Solvency II internal model
Insurers continue to question the benefits of Solvency II and whether the internal model will justify its considerable cost. We believe companies can create competitive advantage from their internal models. Learn more.

Findings from our insurance internal audit survey
Some say insurers operating in the EU face the most far-reaching change to their business (i.e., Solvency II). To gauge the unique challenges facing internal audit functions, we surveyed heads of Internal Audit from prominent organizations across the UK and Western Europe. See our key findings.

Solvency II compliance and risk management for insurance
Does your risk management approach meet Solvency II requirements and your company's needs? Many CEOs know what their goals are, but are unclear how to reach them. Learn more about effective risk management approaches for insurance companies.

Solvency II: Pillar III and IFRS 4
Insurers face additional challenges around data, systems changes and the need to upgrade and speed up reporting processes to meet the requirements of Pillar III. Are you prepared? Inside, we identify the key issues, an implementation framework and critical success factors for addressing IFRS 4 Phase II alongside Solvency II.

Solvency II update on the timetable for implementation and recent developments
This update sets forth Ernst & Young's current views on the timetable for implementation of Solvency II, and recent developments at the level of the European Institutions. Ernst & Young remains supportive of the Solvency II objectives to improve risk management in the insurance industry, and to both modernize and harmonize prudential supervision of insurance across Europe. Find out more.

Solvency II and IFRS: are your data and systems up to speed?
Streamlined IT systems and effective data management are core components of Solvency II implementation. But with IFRS 4 Phase II as another regulatory initiative, data and system solutions will also need to factor in proposed international financial reporting standards. We offer guidance.

EIOPA publishes QIS 5 results
QIS 5 is also the final full-scale test of its type to be run in advance of the Solvency II regime being in force. Find out more

Bridging the gap: IFRS and Solvency II
Similarities between IFRS 4 Phase II and Solvency II  are creating implementation synergies. However, Phase II introduces requirements that go beyond Solvency II. Discover how.

The impact of Solvency II on asset managers
This paper examines the potential impact of Solvency II on asset managers with insurance company mandates. It sets out the key implications of the new regime, especially in terms of asset data reporting and some of the factors that may affect the responses of asset management companies.

2010 Publications

Solvency II internal models: from risk measurement to risk management
This article focuses on the qualitative and process aspects necessary for a robust internal model which meets the standards of regulatory internal model approval.

Solvency II: implications for the US market
Although Solvency II is being implemented in the EU, its implications will be felt worldwide, including in the US.

Tax implications of Solvency II
How should tax directors ensure that tax is being adequately considered in their Solvency II programs?

Addressing tax risk in the Solvency II environment
Without addressing tax risks as part of the Solvency II programs, companies can potentially implement Solvency II without adequately mapping the regulatory capital requirements against their specific risk profile.

Solvency II: Information systems as a major challenge
Our report discusses the issues around the implementation of the Solvency II directive and explores how IT applies to Solvency II, required IT functionalities, and IT general controls.

2009 Publications

Reading tea leaves under a glass ceiling: disclosing financial strength
In this paper, we examine; disclosure, market discipline and the potential implications for processes, governance and information requirements.

Unlocking the mystery of the risk framework around ORSA
In this article, we continue our discussion around risk management, testing the impact of ORSA, the guidance to date, where companies currently stand and the key issues and challenges they face.

Solvency II: Putting risk and governance at the heart of business
In this paper, we examine the importance of Pillar 2 and its implications.

Solvency II formally adopted
Read Ernst & Young's perspective.

Solvency II: Information systems as a major challenge
Our report discusses the issues around the implementation of the Solvency II directive and explores how IT applies to Solvency II, required IT functionalities, and IT general controls.

2008 Publications

Ernst & Young - Solvency II Taskforce comments on ECOFIN
The Economic and Financial Affairs Council (ECOFIN) recently agreed on the key issues of the Solvency II framework directive; however, without including the provisions covering international insurance groups. Read more.

Insurance regulatory guidance amid the financial crisis
The insurance industry and regulators should use the current global financial crisis to drive a constructive evolution of regulatory guidance, says Ernst & Young's Global Insurance Center. Read the press release.

The meaning of market consistency in Europe
We looked at various concepts to help global insurers find the meaning of market-consistent valuation for insurance liabilities.

Measuring operational risk
We identify the challenges – and assess the impact – of Solvency II OpRisk requirements.

Grasping the reins of fundamental change: Ernst & Young's comments on Solvency II draft directive
We explore the directive's main components and offer our assessment.

QIS 4: from consultation to implementation
In this report, we bring you up to speed on key lessons learned from QIS 1, 2 and 3, and highlight the issues being addressed in QIS 4. 

Raising the bar: transforming Solvency II into a business enabler
Learn how to "raise the bar" and integrate Solvency II, using precedents set by Basel II and the Swiss Solvency Test.

Key principles of Solvency II
Read this report to better understand the drivers behind Solvency II and interpret the key principles of this future directive.

Ready, set, go! Insurers gear up for Solvency II
We discuss the key implementation considerations for Solvency II and explain how the QIS program works.

2007 Publications

Seven steps to Solvency II success
Seven indicators of best practice for conversion to Solvency II using the experience of IFRS and Basel II. Published in The Review.

Taking Solvency II to the next level
With Solvency II requirements becoming clearer, insurance groups will need to examine their corporate structure and intra-group risk transfer arrangements.

2006 Publications

CrossCurrents: Solvency II survey reveals insurers' hopes and concerns
Highlights of our survey of European insurance companies on attitudes toward Solvency II perceived difficulties and opportunities, and their state of readiness.