Solvency 2 FSA Data Audit for IMAP

I haven’t written a post about Solvency 2 (or Solvency II if you prefer) for a while and given it is still my primary focus with my current client I thought it was about time I gave a quick update.

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