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Managing risk can run hand in hand with customer care
As we approach the halfway point in the year the clock ticks ever closer to the implementation of Solvency II on 1 January 2016. Designed to provide an enhanced EU-wide insurance regime Solvency II has a wide ranging remit including governance, supervision, solvency and risk management.
Speaking at the European Insurance Conference recently Andrew Bulley, Director of Life Insurance in the Prudential Regulation Authority (PRA), took the opportunity to look back at the success of the Individual Capital Adequacy Standards (ICAS) regime as some of its aims and objectives transition into Solvency II. Commenting that one of the pivotal aims of ICAS, and of Solvency II is the management of risk culture, Andrew Bulley observed that whilst UK insurers had made great strides in this area, more could be done” and will be done under the fresh impetus of Solvency II.”
One area which Mr Bulley highlighted was the fact that although the aim of Solvency II was harmonisation, in no way should this override the prime objective of policyholder protection. So whilst the PRA’s supervisory regime is, and will continue to be, forward-looking, risk-based and judgement-led its outlook will be informed by the requirement to put policyholders at the forefront of decisions. It’s a strong reminder that managing risk can run hand in hand with customer care.