Clock ticking for Lloyd’s insurers on Solvency II

Lloyd’s syndicates face an intensive period of activity if they are to meet the Solvency II implementation schedule for 2011, according to Towers Watson.

Before the end of the year, each managing agent must confirm that they are sufficiently ready to enable Lloyd’s to submit its Solvency II internal model application in January 2012.

But to do so, they must also demonstrate to Lloyd’s – and the FSA – that the many deadlines from March through to December are consistently being met.

Mike Wilkinson, management consultant at Towers Watson said, “With seven parallel Lloyd’s workstreams, each with overlapping and challenging deadlines, agents will need to ensure resources are highly focused on delivery but at the same time ensure that the complexities of Solvency II are fully understood and integrated into a coherent framework.”

Firms face the threat of sanctions for not meeting key objectives,

Wilkinson addd: “In only eight months time, each syndicate will need to submit a full and robust Solvency Capital Requirement (SCR) on a Solvency II basis.

"But agents will also need to be careful not to shift their focus away entirely from the qualitative aspects as a robust SCR is as much about process, validation and integration into the business as it is the technical calculations. This will be crucial for internal model approval.”