European Financial Services Group: Solvency II Compliance

Accenture helped this international provider of insurance and banking services put the capabilities in place to comply with Solvency II regulations. In addition, improved risk management functionality will help the company in its quest to attain high performance.

The client is an international provider of insurance and banking services to personal, business and institutional customers. As of 2009, it had total assets of more than €93.3 billion ($121 billion) and about 85,000 staff around the world. It holds a European Top 10 position in the insurance market.

The client’s risk governance organization was extremely complex, with separate risk departments in each operating entity, including the head office. Its technical infrastructure was similarly heterogeneous, with varying levels of sophistication across departments and countries. As a result, the client was unable to comply with Solvency II, the European Union’s directive to establish sound risk management practices in the insurance industry.

The client elected to work with Accenture based on its experience in Solvency II compliance backed up by a range of proprietary methodologies and frameworks. Accenture helps companies use Solvency II compliance as the first step in an ongoing journey toward high performance.

Accenture Finance and Performance Management and Accenture Risk Management worked closely with the client to design and implement a new risk management function supported by an adequate IT infrastructure. The team analyzed current processes, governance and IT infrastructure, including an evaluation of assets and liabilities, market risk, life/non-life risk, and credit and operational risk. By means of a series of requirements-gathering workshops Accenture then helped formulate the steps necessary to update processes and systems based on both Solvency II mandates and the company’s own requirements. Accenture also provided project estimation support, release planning, and setup and project management.

With Accenture’s help, the client gained a clear and consistent view of its current risk management functions and its enabling IT systems as well as the desired end state. The company now has a master plan that will help it comply with Solvency II directives, with Accenture’s project management support. When the process is complete, the client will have an improved risk management function that will help support its future growth objectives and position it for high performance.