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'Failing' Solvency II aids risk managers

Tuesday 17 May 2011 - by Will Henley

Risk managers can expect a massive increase in their take-home pay as a result of the European Union's Solvency II review, according a new survey.

The bid to improve the capital adequacy of insurers, in line with the Basel III accord for banks, is expected to increase manager pay by a whopping 70 per cent over the next 12 months alone.

However the research by law firm Kinsey Allen International and the UK's Institute of Risk Management suggests that nearly half (46 per cent) of risk managers believe the review will fail to achieve its objectives.

It suggests 44 per cent of risk professionals believe their teams will grow in the year ahead as a result of the updated EU requirements, which come into effect in early 2013.

Risk managers are now devoting half their time to Solvency II, up on the less than 20 per cent they spent on Solvency work 18 months ago, the research suggests.


Yet, according to Kinsey Allen International, there is "growing unease" that Solvency II is "overly conservative and leaves many concerns of the insurance industry unaddressed".

Senior consultant Loraine Silvester says: "Doubts may still linger as to whether Solvency II will achieve its objectives, but there is no doubt it is changing the landscape within risk.

"It is something that all insurance firms must comply with, and this is driving a change in recruitment policy and working habits.

"Risk professionals with Solvency II or financial risk or modelling experience are in hot demand as the big players look to broaden their risk teams to adapt in time for next year's new regulatory framework."

Send us your thoughts (in strict confidence) or submit an article in response:
Email: will.henley@gfsnews.com


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