By DST Global Solutions
With the January 2013 Solvency II deadline around the corner and the continued uncertainty surrounding the final shape of the legislation, the insurance market is tasked with a significant challenge. DST Global Solutions has today published a white paper addressing the importance of operational efficiency in the build up to these revised regulatory requirements.
Most of the time and effort expended by insurers on Solvency II so far has been spent on implementing systems and procedures for measuring and calculating levels of capital and prime risk. But without adequate processes and controls in place in business operations, the capital adequacy levels required could be adversely impacted by operational risk weightings with consequent impact on competitiveness.
Tony Armour, Managing Director for Business Process Solutions at DST Global Solutions, said: “Solvency II is about change of behaviour, managing your business better and proving that you are doing so. At DST Global Solutions we believe that business process management will be a key enabler for Solvency II compliance.
As the DST Global Solutions' white paper describes, business process management within insurance operations has long been focused on the end customer as organisations seek to improve customer service while trying to meet internal productivity, quality and cost targets. With risk management underpinning the Solvency II regime, organisations need to look beyond the use of traditional tools such as spreadsheets and ad hoc reports, and instead begin to utilise more sophisticated solutions that can orchestrate access to these sources of information.
Tony Armour commented: "Deploying a solution that enables the end-to-end automation, distribution and recording of processes not only enforces their use and facilitates adoption, but allows production of audit trails and digital documentation. Solvency II should be seen as a competitive imperative, and those who are able to demonstrate sound operational control and efficiency will benefit from reduced operational risk as well as capital adequacy requirements."
To learn how business process management supports firms seeking to comply with Solvency II, please download the DST Global Solutions white paper by clicking on the icon below:
 White Paper: Will your process efficiency impact your operational viability in a Solvency II world?
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