Padraic Joyce from PwC on Solvency II

Padraic Joyce, an Insurance Partner in the Audit Practice at PwC, moderated a session on Solvency II at the recent European Insurance Forum (EIF) in Dublin. Here, he discusses what remains to be done, the impact of Solvency II on corporate structures, and more.

Mr. Joyce points out that Solvency II has three pillars. Pillars I is concerned with internal models and modelling capital. Pillar II deals with corporate governance requirements and internal governance structures. Pillar III is about information and disclosure. “Because companies have focused on the first two pillars, there is a lot of work that needs to be done to be in compliance with Pillar III.”

Solvency II will have a significant impact on capital, and it will vary by company. Currently, Mr. Joyce says “capital requirements are done on a formulaic basis based on exposure or claims experience. That is going to change.” Companies are going to use their own risk framework and the diversity of their portfolio to determine capital requirements. Mr. Joyce believes this is going to be “a driver of a lot of corporate restructuring.”

According to Mr. Joyce, the biggest surprise for some companies will be the information requirements in relation to Pillar III. He expects there to be scramble to find the information that is required. He advises companies to understand the information they are going to need and get the QRTs and forms out. “

For more World Risk and Insurance News from the 2015 European Insurance Forum (EIF) in Dublin, visit the dedicated EIF 2015 Channel in the WRIN.tv On Demand Library.

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