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Daily Insurance Industry News
Monday 20th of August 2018
July 6, 2010

Solvency II fuels demand for risk professionals

by Richard Kilner

Story link: Solvency II fuels demand for risk professionals

Executive search firm Kinsey Allen International has found that risk professionals in the insurance industry are seeing rising demand due to the forthcoming Solvency II regulations.

The new regulations will apply to insurance firms operating within the European Union, and will come into effect towards the end of 2012.

The surge in demand for risk professionals has seen the day rate for an interim risk analyst increase from £310 last year to £400 now, with retention bonuses up from 10% of the day rate in 2009 to 20% in 2010.

In addition, contracts have now doubled in length from 3 months to 6.

Kinsey Allen International’s Lorraine Silvester explained that at the end of last year two out of five British insurers had a fully operational Solvency II team.

Silvester estimated that, amongst FTSE100 insurers, there were only around 400 full time risk experts, indicating the small talent pool available for the vital work.

She added that seven out of 10 interim risk professionals in the insurance sector dealt solely with preparations for Solvency II.

Effective communication is as valuable to insurers as correct technical competence, as professionals endowed with a diplomatic penchant can help persuade others of the necessity to change.

In May this year a report by the Economist Intelligence Unit, commissioned by Deloitte, found that 36% of UK insurers believed the sector would be unprepared for the new regulations.

 

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