Following the publication by the FSA of Discussion Paper 08/4 Insurance Risk Management: the Path to Solvency II we have created a brief checklist of issues that firms should consider to help prepare for the regulatory change.
1. In March 2009 the FSA will write to each firm asking them to identify the senior individual(s) within each organisation responsible for the transition to Solvency II. Has the firm identified who are the senior individuals within the organisation responsible for transition to Solvency II?
If not, the board of the firm should call an early board meeting to table discussions on (amongst others matters):
- identifying who are the senior individuals (from senior management, risk management, finance, actuarial and internal audit) responsible for transition to Solvency II.
- how these senior individuals will discharge their responsibilities?
- consider establishing a project team of senior individuals and other professionals with necessary skills to include (amongst others), IT and HR professionals.
2. Has the firm initiated a GAP analysis?
If not, firms needs to take immediate action to identify whether there are any shortfalls in expected compliance with Solvency II.
3. Has the firm submitted its QIS4 spreadsheet to the FSA?
Firms that did not participate should submit their QIS4 to the FSA on a best efforts basis, to identify key issues that may arise for them.
4. Has the firm notified the FSA whether they intend to apply for internal model approval for calculation of their Solvency Capital Requirement?
If not, firms must do so by June 2009.
For further information: Solvency II update