ORSAs for CORSAs: Solvency II tests

Both internal audit and compliance functions should now be well down the track in their preparation for phased implementation from 1 January 2013 of the EU Solvency II Directive. But don’t spare the horses, as many insurers still have much ground to cover. John Webb sets out a suggested testing programme.

John Webb MA, FCCA, ACFE (johnwebb77@gmail.com) is the former chairman of the Institute of Internal Auditors’ banking and financial services group and serves on the Association of Chartered Certified Accountants’ internal audit network panel committee. He is a financial services internal audit consultant, specialising in investment banking and Solvency II for insurance companies. As a certified fraud examiner, John is experienced both in fraud risk management and investigation. © John Webb 2011.

Internal audit and compliance really have their work cut out when addressing the growing expectations for performing audit testing, as insurance and reinsurance companies wrestle with the continuously changing expectations and timetable slippages inherent in Solvency II. It is still some time before Solvency II compliance will be required, but there is much for the industry to do in order to be prepared for that moment (or period of time, given that it will be phased in).