Solvency II a bigger risk to insurers than hurricanes, says new survey from Northdoor

25 October 2010

Northdoor, the IT consultancy and solutions provider, has today released the results of new survey which suggests that the insurance industry regards Solvency II as a bigger risk to its business practices than hurricanes. The survey of 38 representatives from insurers found that nearly two-thirds (58%) of respondents believe that Solvency II represents a bigger risk than hurricanes.

Other significant findings of the survey include:

• 26% think the industry isn’t on track with Solvency II compliance – 45% aren’t sure
• 71% think Solvency II implementation will help their business model
• 35% of respondents say their company has spent less than £250k so far on Solvency II – 13% said they’ve spent between £250k-£500k
• 29% say they expect to spend a further £250k-£500k on compliance – 6% expect to spend a further £1m or more!

Rob Stavrou, director of consultancy at Northdoor, said, “The fact that the industry sees Solvency II as on a par with hurricane season shows that this really is the burning issue in the market right now. Companies have made good progress – but there is still more to do – and it’s worrying that nearly 75% of respondents didn’t know or weren’t sure whether the industry was really on track with compliance. Solvency II requires a focus on three key areas – data, processes and technology – and companies really need to keep that in mind as they move forward with their progress towards compliance.”

Northdoor is working with a range of companies in the London and general insurance markets to help them achieve Solvency II compliance – and recently unveiled its ‘Solvency II checklist’. The checklist is for use by compliance and IT departments within insurers and has been designed to give companies an accurate picture of their progress along the road to meeting Solvency II regulations. The checklist has been developed from Northdoor’s experience of real-life challenges faced by companies as they adapt and review their businesses in respect of Solvency II.

To obtain the checklist, please email solvencyII@northdoor.co.uk. Northdoor is also offering a complimentary Solvency II health check with its experienced consultants.

About Northdoor

Northdoor provides integrated information technology solutions. Northdoor provides consultancy, application development, enterprise infrastructure and IT support and managed services. Originally founded in 1989 to serve the London Market, Northdoor has extended its expertise in insurance and banking to wider sectors, such as media, retail and travel, with services now reaching over 200 businesses. Northdoor has a collaborative and high-touch customer care approach in delivering tailored solutions that help clients to achieve their business objectives. For more information see www.northdoor.co.uk