PwC highlights Solvency II staff and budget concerns
by Gill Montia
Nearly three quarters (74%) of insurers are confident they will meet the 2013 deadline for implementing Solvency II, despite more than 40% being in the preparatory stages of their projects, or yet to launch them.
According to a recent PricewaterhouseCoopers (PWC) survey of 115 insurers in 22 countries, of those that have made a start, the majority are only a quarter of the way through.
The study also reveals that many insurers are unsure about their needs for additional money and people, to complete their projects, although respondents expect most of their remaining costs to come from IT spend and staff recruitment.
Forty per cent of respondents have a budget of less than €1 million and of those who have already launched their Solvency II projects, 83% have spent less than 20%, indicating that the majority of the effort is yet to come.
Commenting on the findings, PwC’s global Solvency II leader, Paul Clarke, says: “Insurers are facing difficult questions over whether hiring the additional people needed with the required skills will be possible.”
He adds: “Many could find themselves paying over the odds for people with the right skills if they don’t clarify their resource needs sooner rather than later”.
Mr Clarke also suggests that Solvency II budgets may have to rise considerably, as detailed rules in the level-two implementing measures are issued.