Aon Global Risk Consulting today launched a White Paper outlining the current market trends and impact on captives of Solvency II. Recognising the significance of Pillar II compliance, the report outlines the importance of defining a target Governance operating model to meet the demands of the regulation in a pragmatic and cost effective way.
Launching the report, The Aon Captive Guide to Pillar II, at the European Captive Forum in Luxembourg, Markus Mende, Group Managing Director, Aon Risk Consulting, said, "The continuous development of the Solvency II regulatory framework presents a specific set of challenges for parent organisations and their captives structures. Against this backdrop, helping companies set up the future risk and governance system required for their captives in a way that maximises existing corporate and captive processes is essential. Since the introduction of Solvency II, Aon has been strongly involved in lobbying activities in close co-operation with ECIROA and FERMA. Within this context, we have put forward the captive sector’s need for proportionality and understand the requirements of the regulators. It is essential to enable our captive clients navigate through the Pillar II processes and this report and our IT initiatives are supporting this”.
The report highlights how to formalise a fit-for-purpose and proportionate Governance and Risk Management System and is supported by a number of Aon-led initiatives which can help captives understand the requirements of Pillar II. These include the development of a Governance, Risk Management and Compliance IT platform which helps the management and maintenance of governance for captive clients.
Fabrice Frere, Solvency II Practice Leader, Aon Global Risk Consulting, said “We believe that, with a sound and consistent methodology, the various Solvency II requirements can be met without having to go significantly beyond current best practice. We have already seen a number of companies gain benefits from the implementation of a System of Governance and believe that the initial perceived threats presented by Solvency II can actually bring advantages.
For a copy of the report, please contact Lara Scicluna on lara.scicluna@aon.gi
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