Solvency II Procrastination

These days, it seems that every financial firm is struggling to comply with some new regulation. So the good news is that nearly three-fourths of insurers feel confident that they will meet the 2013 deadline for Solvency II implementation.

Of course, that means more than a quarter think they will not be ready. Moreover, according to research from PricewaterhouseCoopers ("Getting Ready for Solvency II"), some 10% have yet to even begin to prepare. That sound you are hearing is tick tock, tick tock.

In addition to the time constraints facing those carriers that still have their heads in the sand are budget concerns. Four out of 10 companies have a budget of just €1 million to implement their programs. So while insurers cite lofty goals including "improved decision-making tools" and "competitive advantage," it seems hard to believe that those companies expecting to spend only €1 million really want to achieve anything more than compliance.

"Given the complexity of Solvency II and the diverse skills required for its implementation, the level of staffing currently anticipated by many respondents appears to contrast with the broader goals for Solvency II," states the report. It seems that many companies, much like with Sarbanes-Oxley before it, are only doing the bare minimum on Solvency II.