In Solvency II context, the main issues with regards to data are considered to be quality and collection, according to a survey presented at the European Captive Forum in Luxembourg.
Respondents of the survey included mainly risk managers, captive managers, insurers, consultant and brokers, from countries such as France, Luxembourg, Ireland, UK, Guernsey and Malta.
The panel, which discussed data in a Solvency II context, reviewing the last two years, explained that as Solvency II requires insurers, including captives, to better manage data and data quality.
One speaker had observed an increase in the IT systems demands, and an increase in granularity at the captive level, for example, claims data provisions splits and premium allocation.
One of the questions in the survey asked how data is considered to be insufficient or unusable. Respondents found that data was least useful for underwriting (25 percent) and reporting (22 percent). Other respondents suggested that it was insufficient of unusable for claims (13 percent), finance (9 percent), legal (8 percent) and other (2 percent).
Another question asked what the main issues are with regards to data are considered to be. Respondents stated that quality (36 percent) and collection (21 percent) were the biggest issues.
Other issues that respondents found were analysis (15 percent), audit track (14 percent), reporting (9 percent) and finally storage (5 percent).
The survey also asked those involved who data should be held by. The most popular answer was the fronting insurer (32 percent), followed by brokers (20 percent).
The remaining respondents said that corporate (18 percent), TPA (12 percent), captives (12 percent) and, finally, consultants/experts (7 percent).
Finally, the survey found that 65 percent of respondents didn’t engage in a quality management programme due to Solvency II.
One panellist described the results as “disappointing” in terms of how advanced around data the captives and the corporates are. The panellist added that “there is a lot of progress to be made”.
