Life insurers need to improve data
consolidation practices ahead of Solvency II, to in order to comply
with the strict regulations that will govern the quality of data
according to software provider Mastek.
Mastek says that with the introduction of
Solvency II, regulators will need to be convinced that businesses
have enough capital liquidity to cover the level of risk within the
business.
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However, in order to comply with this
requirement, a complete set of appropriate data needs to be on hand
to support the accurate calculation of potential exposure.
The company highlights three main areas which
will need to be addressed: an effective data warehousing structure,
a thorough analysis of data and a flexible, organisation-wide IT
model for mapping information.
Richard Sansome, Mastek’s senior vice
president & head of financial services, said: “Today’s
insurance market is based on many different kinds of data;
everything from handling and dealing through to trading and
exchanging sensitive information.
“Many organisations are still underestimating
the resources required to comply with Solvency II, especially as
most firms don’t have the tools in place to do this internally. As
such, firms will need to begin implementing these processes now in
order to ensure that their systems are up to date ahead of the 2014
deadline.”
