Solvency II implementation - working with PwC

In the last 12 months, PwC has worked with over 50 insurance companies in the UK to help them assess the implications of Solvency II on their business and plan for the detailed requirements of implementation. We are now moving into detailed design and implementation programmes with these clients.

Based on our work to date, we have gained tremendous understanding of the Solvency II requirements, developed considerable Intellectual Property and produced a large number of implementation accelerators which help our clients understand and think about what their individual requirements for Solvency II need to be. These accelerators are enabling our clients to cut months off the implementation process and save thousands of pounds by being able to move quickly from high level requirements to detailed design and implementation.

In summary, we are helping insurers and reinsurers address the following key areas;

Risk framework design and implementation

  • Risk universe, identification and allocation
  • Risk appetite development
  • Risk policy development
  • Governance structure evaluation and enhancement
  • Risk M.I. - Board and operational level
  • Risk Management Function design and operating model
  • Embedding risk management into key business processes
  • Defining and implementing Risk technology requirements
  • Defining and implementing risk culture

Models, data and IT

  • Capital adequacy and model definition and support,
    Pillar 1
  • Capital adequacy, Pillar 2, including ORSA processes
  • Determination of SCR and MCR
  • Risk measurement methods - insurance risk
  • Risk measurement methods - market risk
  • Risk measurement methods - credit risk
  • Risk measurement methods - liquidity risk
  • Risk measurement methods - operational risk
  • Standard formula and QIS support
  • Stress and scenario testing
  • Technical provisions and reserving
  • Data requirements
  • Risk technology requirements - executive level
  • Risk technology requirements - individual risk types

Disclosure and market communication

  • External communications to market/analysts/rating agencies
  • SII reporting - RTS and SFCR
  • ORSA reporting

Risk and finance process change

  • Risk and finance data integration analysis
  • Process alignment and re-design
  • M.I. change and implementation - Board and operational
  • M.I. "industrialisation"
  • Outsourcing

Capital management and Business strategy

  • Business case development
  • Business strategy changes
  • Target operating model (Business and use test)
  • Capital management and risk mitigation
  • Group structures
  • Pricing and distribution
  • Business re-organisation and restructuring
  • Capital structuring and tax support

Solvency II Assurance

  • Internal Model Approval Process (IMAP) support
  • Model documentation
  • Model validation
  • Internal audit support
  • Data assurance
  • Programme assurance
  • Internal controls framework enhancement
  • Gap analysis and readiness assessments
  • Regulatory requirements

Change management

  • Leadership
  • Organisational design
  • Talent management
  • Performance measurement and reward

Solvency II gap analysis

  • Regulatory impact (understanding regulatory requirements, timescales, etc)
  • Current practices assessment
  • Enhancement identification
  • Sizing Solvency II programme requirements
  • Existing Solvency II plan evaluation

Programme management

  • Business case development
  • Stakeholder communication
  • Programme office support (planning and progress management)
  • Programme governance