The majority of insurers are not doing enough to bring their boards up to a suitable level of Solvency II understanding, according to KPMG, which points out that failings in this area are jeopardising insurers’ chances of gaining a competitive advantage and ensuring regulatory compliance.
In a recent report, the accountancy firm claims that 80% of insurance company boards have received less than 15 hours of Solvency II training and only 19% are planning to increase the level of training over the next 12 months.
Phil Smart, head of Solvency II at KPMG, comments: “Less than 15 hours is unlikely to be enough to ensure the required level of knowledge for most organisations given the changes made to prepare for Solvency II.”
He adds: “A greater understanding of the business using Solvency II metrics, as well as relevant regulations, will deliver a real competitive advantage for businesses by helping inform strategic decision making particularly with regard to M&A targeting and divestment activity.”
The report recommends that specific Solvency II objectives be included in board members’ development plans.
Category: Financial Services Authority News, Insurance News
