Solvency II, Solvency 2, Solvency ii – seemingly three ways to type it, three pillars supporting it and at first glance it appears to be something to do with Insurance which Insurers and Re-insurers need to worry about, and the rest of us can relax.
Not quite. Two of the pillars do relate to reserving, capital and disclosure, and as good as we might think we are here at BDUK, there are better places to learn about these requirements. The third pillar relates to controls and internal processes, which by definition should only affect the FSA regulated world. Except that whenever an Insurer is hit with additional regulations and requirements (which are EU wide and have SERIOUS implications on the financial side), there is a natural tendancy, and sometimes neccessity, to pass these down the supply chain. In short, whilst the procurement world within Insurance Companies are ensuring that they have documented just about everything that they do, the expectation that the supply chain follow suit and not be a weak link has already begun.
So, come the end of the year, small scale pilots with no CBA or process agreement, gentlemans agreements, and even formal ones will need the weight of documentation behind it. You may never see so may ITT’s!