Compliance to the Solvency II Directive seen as an opportunity to create addid-value for your Business
One of the greatest challenges for all European Union (EU) insurance companies is compliance to the requirements of the Solvency II directive. This EIOPA directive introduces a comprehensive risk management framework for defining the required capital levels as well as implementing procedures to identify, measure and manage risk levels efficiently. For this to be achieved, senior management and the Board have to really understand how the data in their reports relate to their business processes.
SPIRIT has partnered with Business Process Excellence Consulting Software AG, SecondFloor and Juris to offer an integrated solution that meets the requirements of all three pillars of the Solvency II directive. Our solution involves the perfect mix of specialized software, industry expertise and consulting skills that makes the insurers’ response to Solvency II not a mere compliance exercise but an opportunity to generate further value for their company.
Our joint partner offering includes SII-specific reference content, based on rich actuarial, risk management and Solvency II knowledge, best practices and industry experience, including extended ORSA and ERM processes. The ARIS GRC Solution supports all key process-based optimization strategies, from strategic analysis and definition, to designing controls and tests, implementation, controls’ monitoring (via scalable, efficient workflows), company-wide monitoring of process performance, and testing (for the prompt response to deviations and the continuous optimization of the system).
Following our analysis of process control requirements and the procedures for testing, auditing and documenting the results, a high degree of overlap between various regulations is revealed. Significant efficiency advancements can therefore be achieved by applying a consistent method, harmonizing test activity and sharing test results. In fact, the Solvency II directive has been translated into clearly specified business requirements within ARIS.
Each requirement has been mapped to the relevant processes (of the insurance reference model) where it can be implemented, to the functional roles that it affects and to an insurance industry glossary. Processes have already been configured to give clients a head start in terms of compliant process modeling and reporting. The Solvency II reference model can be used as both a knowledge repository and a tool to indicate requirements or prompt Solvency II projects specifications.
Do you feel that your business lacks an integrated Governance, Risk and Compliance strategy? Please refer to our Risk and Compliance offering page for more information on how you can proactively mitigate internal and external risks.