Life insurers need to improve data consolidation practices ahead of Solvency II, to in order to comply with the strict regulations that will govern the quality of data according to software provider Mastek.
Mastek says that with the introduction of Solvency II, regulators will need to be convinced that businesses have enough capital liquidity to cover the level of risk within the business.
However, in order to comply with this requirement, a complete set of appropriate data needs to be on hand to support the accurate calculation of potential exposure.
The company highlights three main areas which will need to be addressed: an effective data warehousing structure, a thorough analysis of data and a flexible, organisation-wide IT model for mapping information.
Richard Sansome, Mastek’s senior vice president & head of financial services, said: “Today’s insurance market is based on many different kinds of data; everything from handling and dealing through to trading and exchanging sensitive information.
“Many organisations are still underestimating the resources required to comply with Solvency II, especially as most firms don’t have the tools in place to do this internally. As such, firms will need to begin implementing these processes now in order to ensure that their systems are up to date ahead of the 2014 deadline.”