An excellent insight piece from Chris
Johnson of HSBC explains why Solvency II has serious consequences for data
management, not just in the core insurance industry at which the measure's
aimed, but also the extended value chains in which carriers sit:
“Insurance firms generally possess the majority of the data required in respect of their liabilities. The data on their assets, however, will be trickier to gather. That is because it usually resides with multiple external parties – with the fund managers to which they may have outsourced the investment management function, with third-party custody and fund administration firms, and with vendors of market and reference data. Insurance companies will therefore have to rely on them to provide this additional data, which will have to meet certain standards and be reported quarterly (and ad hoc if required) within 5 to 10 days of each quarter’s end.”
The asset data challenge has three aspects
– dealing with new data types, ensuring data quality, and creating data
transparency. People have been working hard to meet a January 2014 deadline
which is likely to be put back to 2016. But there's still more than enough to
do. Meeting the requirements of Solvency II isn't a purely inhouse issue. We
need outreach, negotiation, and coordination across the chain. Asset Data Change
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