White Papers

As we enter 2008, challenges facing insurers include commercial pressures and a changing regulatory environment. Currently the EU Solvency II Directive is planned to come into effect in 2012. While this may seem a long way off, insurers need to be thinking and planning now how this will impact their businesses and ensure that they have the right processes and information systems in place to comply. The transformation the insurance industry is currently undergoing is similar to that seen in the banking industry in the 1980s, as insurers and regulators address past practices which have been damaging to both shareholders and policyholders. These practices have involved both the way in which insurer’s businesses were managed and the restrictions created by a simplistic and inflexible regulatory environment. This paper discusses some of the issues, and considers some of the implications as well as suggesting the likely impact of these challenges on information systems strategy for UK and European insurers, specifically those operating in the Property & Casualty sector.

Author: Jill Loveless, Head of Insurance Services