Towers Watson

Fully operational in 2014, Solvency II readiness is reaching a critical stage. The EU has been testing Solvency II calculations through various QIS exercises. Internal models and Standard Formula calculations are being constructed. Attention is turning to the Pillar 2 and 3 requirements as well as the strategic implications of Solvency II.

Towers Watson has a range of experts throughout the major European countries who can assist with all aspects of Solvency II readiness. For example, we have been helping clients with:

• Internal model development
• QIS exercises
• Asset liability modelling
• Thought leadership and strategic positioning for the post Solvency II world
• Updating their software capabilities with market-leading solutions such as
• Igloo, including Igloo Standard Formula
• MoSes
• ResQ
• RiskAgility, including RiskAgility Standard Formula

Analysis

• press release: Solvency II Use Test requires shift to risk management
  23 May 2012
  Insurance companies across Europe preparing for the implementation of Solvency II risk missing this one-off opportunity to achieve a return on the substantial investment made in complying with the regulations, according to a publication released by Towers Watson.
• e-Alert: Consultation Paper on the Proposal for Guidelines on Own Risk and Solvency Assessment
  11 November 2011
  EIOPA has published a consultation paper on the proposed guidelines for ORSA earlier this week. This consultation paper is open for comment until 20 January 2012, after which EIOPA will formalise the level 3 guidance on ORSA.
• Insights: Capital management
  21 October 2011
  Effective and efficient capital management has always been an important consideration in managing both life and property and casualty (P&C) insurance companies. However, the need for insurers to focus on target capital levels, the type and mix of capital used and its distribution among companies within insurance groups is increasing.
• e-Alert: Revised FSA implementation assumptions for the internal model approach
  5 October 2011
  In response to the discussions in Europe regarding the splitting of the implementation dates for Solvency II, the FSA has revised the Solvency II internal model implementation assumptions.
• press release: New study reveals European insurers are ill-prepared for Solvency II operating environment and many unable to earn their cost of capital
  20 July 2011
  Few insurers across Europe are currently able to earn their cost of capital according to a new Bain & Company and Towers Watson study (“Solvency II: A Strategic and Cultural Challenge”). The study covered the repercussions of Solvency II for major insurers in Germany, France, Italy and the UK operating in the life, health and property/casualty sectors.