Taking the strain out of technical provisions
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Technical provisions are undoubtedly a challenging area of Solvency II implementation, though many insurers may be making them more complicated than they actually need to be.
How can you cut through the complexity and cut down on the workload? By seeing the technical provisions as solely a back office issue, many firms may also be failing to take account of the wider implications for profitability, financial reporting and investor relations.
Timing provides the underlying challenge . Over-reliance on manual processes will make it difficult to meet the required timescales and make the process much harder to control and document. It will also sharply reduce the time actuarial and finance professionals can devote to advising management.
There’s no need to make the technical provisions any harder than they already are. Making best use of evaluations that are already in place and taking a pragmatic approach to some of the more complex questions can help to save a considerable amount of effort.
The key is getting all the stakeholders together and then assessing what the crucial deliverables are. The Solvency II team at PwC would be delighted to discuss this in more detail. Please contact our specialists on the right of the page.
