12 June 2017
It’s nearly a fortnight since most December year-end insurers had to publish their Solvency and Financial Condition Reports under Solvency II. What have these reports brought to the market? A clear insight into each firm’s capital strength and quality of risk management? A jargon-heavy document unfit for public consumption? A shiny and slick report to impress stakeholders?
Well, to some extent, all of the above. We are already busy analysing the quantitative data that has been published alongside the narrative reports. This will provide useful market insights into capital measures by sector, geography and lines of business. It will also shed light on how much firms are benefiting from the transitional measures, used to ease firms into full Solvency II compliance over a period of time.But some firms have struggled with the narrative reports. With no guidance to draw on, there’s a wide range in the quality of the SFCRs that have been published so far. Some are short, unbranded and difficult to find – giving the reader the bare minimum (or sometimes less) than is required under the regulations. Others are slick and polished, making a splash on their corporate webpages and being used as a marketing tool for the financially-savvy reader. As more reports emerge, so too will a clearer consensus of what’s needed and current market practice. We've been helping firms take this opportunity to review their initial efforts to see how they can be improved in time for next year's disclosures.
Key considerations include:
- Have you complied with all the requirements?
- Are you disclosing too much information?
- What can we learn from others?
- Where are we currently falling short as an industry?
- How can you get the most value from your SFCR?
Make sure you schedule this review into your Solvency II timelines. It will save you time in the long run, ensure you keep up with emerging market practice, and help your readers get the most out of your Pillar 3 reporting.
Solvency II reporting across the UK and Ireland
Our third annual review of Solvency II reporting by 100 of the top non-life insurers in the UK and Ireland.Access the findings