Solvency II a “bigger risk than hurricanes”
The implementation of Solvency II is considered a bigger risk to the insurance industry than hurricanes, new research has found.
According to a study compiled by IT consultancy Northdoor, 58% of insurers believe that the incoming European solvency regulation is more of a risk to insurers than a natural catastrophe.
The research also revealed that 26% believe that the industry is behind with its Solvency II compliance, while 13% claimed that they had already spent between £250 000 and £500 000 on the regulation. An additional 6% expect to spend at least £1m more.
Commenting on the findings, Rob Stavrou, director of consultancy at Northdoor, said: "The fact that the industry sees Solvency II as on a par with hurricane season shows that this really is the burning issue in the market right now!
"Companies have made good progress - but there is still more to do - and it's worrying that nearly 75% of respondents didn't know or weren't sure whether the industry was really on track with compliance.
He added: "Solvency II requires a focus on three key areas - data, processes and technology - and companies really need to keep that in mind as they move forward with their progress towards compliance."
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