As the deadline for Solvency II approaches, SimCorp, a leading provider of investment management software for the international insurance industry, supports its clients in preparing their IT landscapes for the changes to come.
Current European Union (EU) directives dictate that all insurance, life-insurance and pension companies operating within the EU must comply with the Solvency II framework by the end of 2012. Solvency II is a directive that introduces a new solvency regime, based on an integrated risk approach, with provision for these risks in the form of solvency capital. It is more comprehensive than any previous regulation of its kind and there is no out-of-the-box solution for Solvency II on the market today.
After hosting numerous Solvency II council meetings, workshops and interviews with clients across Europe, SimCorp has established an overview of the industry’s needs and requirements, and consequently developed a comprehensive solution package.
“The way SimCorp approaches Solvency II by first entering into a close dialogue with its clients to uncover their precise needs and from there goes on to integrate the necessary solutions in SimCorp Dimension is the true measure of a strategic partner,” says Carsten Meyer, responsible for asset management controlling at Germany-based Alte Leipziger. “As Solvency II affects various parts of our business, for instance when it comes to gathering data, we are also confirmed in the value of having a seamlessly integrated and flexible system such as SimCorp Dimension.”
Among other things, Solvency II includes frameworks for capital requirements, governance and risk management, and reporting. While the new regulation has not yet been fully defined, it is clear that SimCorp Dimension supports the functionality needed for calculating the market risk capital requirements and provides support for advanced reporting.
“New regulations like Solvency II always create some uncertainty in the market. At SimCorp we are committed to eliminating that by providing our clients with an IT platform that can support the advancing needs,” says Peter L. Ravn, chief executive officer at SimCorp. “Together with our clients and the different local associations and authorities we are able to develop and provide a solution that enables our clients to comply with the regulatory changes.”