Majority on track to meet Solvency II deadline

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New research, carried out recently by Capita’s financial services consultancy practice, shows that an encouraging 64% of those questioned are on track to meet the Solvency II deadline. However, the research also worryingly highlights that the third pillar (reporting) is still being ignored. Less than a quarter (16%) cited it as the most vital of the three pillars that make up Solvency II.

When asked which of the three pillars they see as the most vital, the Solvency II practitioners questioned opted overwhelmingly for governance, the second pillar (64%). The first pillar, capital adequacy, was seen as most vital by nearly a quarter (20%).

Commenting on the research, Tony Tarquini, head of the financial services consultancy practice at Capita, said: “It is encouraging to see that the majority are on track to meet the Solvency II deadline. At its heart, this regulation is all about ensuring that all insurance companies are doing what well run insurance organisations have been doing all along. 

“It is also particularly good to see that many recognise the importance of governance, as this is without doubt the most important pillar. In my opinion, far too much time has been spent on the first pillar, and not enough on the second and third. Indeed, pillar one is only the outcome of successfully executing pillars two and three.

“As such, I would urge all companies to give adequate time and attention to the third pillar. It may not be as vital as governance, but it is getting the reporting element right that will take the most amount of work and time.”

Ends

Notes to editors:

The research was carried out at in November 2011, among 50 respondents.

The Capita Group Plc is the UK’s leading provider of BPO and integrated professional support service solutions.  With around 45,000 people at more than 350 sites, including 64 business centres across the UK, Ireland, the Channel Islands and India, the Group uses its expertise, infrastructure and scale benefits to transform its clients’ services, driving down costs and adding value. Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE100 with revenues for 2010 of £2,744 million.  Further information on The Capita Group Plc can be found at:http://www.capita.co.uk

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