Taking advantage of the challenges posed by Solvency II

Solvency II represents a major factor of change for the European insurance industry. Indeed, it is generating and will certainly continue to generate most of the new IT project spending in the field of compliance for European insurers. In addition, the new set of regulations currently in preparation will have a drastic impact not only in Europe but in other parts of the world too. Here, Nicolas Michellod, senior analyst in the insurance division of information technology research and consulting firm, Celent, considers the impact of Solvency II on European insurers, particularly the way in which it will drive their IT initiatives. Significantly, Mr Michellod situates these trends within the broader context of change influencing the regulation of the international insurance industry

In 1999, the European Union released its Financial Services Action Plan (FSAP). The FSAP is a key component of the EU’s attempt to create a single market for financial services. Its main objectives are harmonization of compliance and promotion of stability in the European financial sectors.