Sylvia Cronin, director of insurance supervision at the Central Bank of Ireland
How has Solvency II changed the industry?
Solvency II is going to bring improved governance, there are going to be changes with Solvency II that will affect the industry. The introduction of risk-based capital charges also represents a significant change. Finally, enhanced reporting, both from a public and regulatory perspective, is an area of significant change.
What is your biggest fear about Solvency II?
My biggest fear is the whole area of reporting and, from an industry perspective, whether there is a real realisation of exactly what needs to be done and the extent of what needs to be done. In Ireland, we are moving from a situation where there was more than 30 forms that needed to be completed by each company, to a situation where there are over 100 forms. We have got 90 forms from the European Insurance and Occupational Pensions Authority, but there are another 11 national specific templates and there are two statistical templates. This is a sea-change in terms of reporting for companies. Also, it hasn't been done. This year there has been a lot of testing done by the large companies, but there has been no real testing done by the small and medium-sized companies.
What is your biggest hope for the new regime?
It is that the own risk and solvency assessment becomes embedded and embraced within companies, and that it moves from a position where it is regarded as a regulatory burden to a position where it is regarded as an exercise that adds value.