For those of you who aren’t aware, most UK-based insurance firms (especially those applying to use their own internal models) will currently be concentrating on the FSA Solvency 2 ‘Data Audit’ and whilst they will all be at various stages in the process, they will be focusing on similar pieces of work and experiencing similar challenges. The ‘Data Audit’ is effectively a review requested by the FSA in which each firm is expected to undertake an independent audit (internal, external or a mixture of both) of their data management practices. The findings of this audit will subsequently form part of the FSA’s Internal Model Approval Process (IMAP) and help the FSA in its assessment of whether a firm is compliant with the standards for data as set out in the Solvency 2 directive. The scope of the review has been defined as all data (both internal and external) that could materially impact the Internal Model. Continue reading
Back in February the FSA published their Internal Models Approval Process (IMAP) Thematic review findings, a paper that brought together their collective findings after a period of discussion and probing of a number of insurance firms. The intention of this paper was to use the information to help identify the better practices being employed by firms, to help the FSA better understand the areas discussed and to give firms some much needed gen into the FSA’s thinking as they approach the pre-application phase of the IMAP.