Global management consulting, technology services and outsourcing company Accenture announced that it will team with SAS Institute “to implement the SAS Risk Management for Insurance solution group-wide at Folksam, one of Sweden’s largest insurers, to help comply with the Solvency II directive’s legal reporting requirements.
“Folksam selected the SAS Risk Management for Insurance solution late last year. In February 2012, SAS Institute selected Accenture to help implement the solution at Folksam.”
The bulletin explained that the process will cover the “entire group, which comprises Folksam General and Folksam Life, the group’s non-life and life insurance companies, and their subsidiaries. It is designed to help Folksam increase the automation of solvency-related calculations and reporting under the European Union’s Solvency II directive, while enhancing the traceability of its solvency data.”
Catrina Ingelstam, Folksam’s CFO, commented: “As a customer-owned company, our policyholders have always been our most important stakeholders. By enhancing our asset calculation capabilities and reporting to support Solvency II, this agreement will help increase the security of our owners and policyholders.”
Accenture noted that “Solvency II calls for a common set of solvency regulations for insurers across Europe by January 2014, including the enactment of new rules regarding the levels of capital that EU insurers must set aside to cover their combined risks and liabilities.
“The directive consists of three pillars, focusing on quantitative requirements (Pillar I), governance, risk management and supervision (Pillar II) and disclosure and transparency requirements (Pillar III).
“Folksam’s solution will be used to quantify the capital needed to meet Pillar I risk potential, perform internal assessment of risk and control models under Pillar II’s Own Risk and Solvency Assessment, and meet disclosure and transparency requirements under Pillar III.”
Per Österman, head of Analytics for Accenture Nordics, pointed out that in order to address “directives such as Solvency II, European insurers must focus on data quality and data governance issues to achieve a more integrated and holistic view of data management and processes. Our people can help clients redesign how data and fact-based insights get embedded in key processes, which is critical to improving operational excellence, product leadership and customer intimacy.”
Eva Dewor, managing director for Europe, Africa and Latin America, Accenture Finance and Risk Services, added: “Proper Solvency II compliance will lead to higher quality risk management, better risk sensitivity and a stronger risk culture. With a sound structure supporting data management, financial reporting and disclosure, risk management, and capital requirements, insurers will be well-positioned to achieve high performance in the post-Solvency II environment.”
The bulletin described Folksam as “a customer-owned company [i.e. a mutual insurer]. They offer insurance and pension investments. Almost one in two Swedes is insured with Folksam and they are one of Sweden’s biggest asset managers.
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