Regulatory burden or
a catalyst for change?
How we helped our client get lasting benefit from its investment in Solvency II compliance
Our client had invested heavily in preparing for Solvency II, navigating the huge volumes of regulatory material and tried to build processes to meet the complex set of regulatory requirements. The client asked us to come alongside its multi-disciplined project team to provide expertise and build their knowledge and capabilities.
We spent time with the internal team and identified a number of opportunities to get value out of the process:
- We gave training to the board to help them understand their responsibilities
- We facilitated discussion on how to assess strategic initiatives in the context of the Own Risk and Solvency Assessment (ORSA) and other Pillar 2 risk management requirements
- We helped develop improved policies and processes in a number of areas, making them more relevant and, therefore, easier to embed in the business
- We developed management information dashboards to give a clearer view of the key risks affecting the business
- We helped improve the quality of capital modelling (both the standard formula process and internal models) to meet the Pillar 1 regulatory requirements
- We provided guidance on how to meet the Pillar 3 reporting requirements efficiently.
Our client has now developed processes to meet regulatory requirements efficiently, and the risk and capital teams are now proactively supporting the board in using the model for a variety of business decisions.