In life the lessons of the past often can be applied to the challenges of the future. We learn to crawl which puts us in a good place to learn to walk. We then learn to walk which hopefully puts us in a good place to learn to run. In the business world it is not much different. Lessons learnt previously should be applied into new challenges and this is very true as insurers continue with their Solvency II implementations.
Recent efforts around Basel II by banks have once again confirmed the importance of data management activities, which typically represent around 80% of the work involved. With Solvency II there is an even greater emphasis on the management and quality of the data than was the case with Basel II since Data Quality is recognized within the Solvency II Directive as a critical aspect of good quality risk management practice and calculations.
Unfortunately for many insurers, current data governance, data quality and monitoring capabilities are not sufficient to comply with these new regulations. However, fortunately this does present the first opportunity for many insurers to get to grips with an issue that has long gone unchecked. That is meeting a regulatory challenge with a proactive approach that can yield benefits well beyond just meeting the regulatory requirements. Data Management, Data Quality and Data Governance will become top of mind topics for all insurers and re-insurers in the EU if it is not already!
One organization that did take this opportunity was HDI Assicurazoni. This insurer knew that to compete successfully in the Italian market, not only must they be Solvency II compliant, but they must be focused on providing quality customer service and offering products tailored to the individual customer needs. HDI Assicurazoni selected SAS Risk Management for Insurance to improve data quality, make faster risk-based decisions and comply with Solvency II. According to Francesco Massari, Head of Information Systems at HDI Assicurazoni, “By using SAS we met the double objective of improving data quality and streamlining processes”.
A good data management strategy is not only a prerequisite for meeting Solvency II regulation, but an excellent one can help insurers increase risk awareness, improve confidence in financial stability, enhance pricing and much more. To learn more about how SAS can help read about Data Management for Solvency II