BearingPoint: a regulatory solution
In recent years, regulatory compliance has moved steadily up the agenda, with the financial crisis prompting myriad shifts across legal frameworks. With national requirements giving way to Europe-wide directives, financial institutions are being forced to keep up with a fast transforming landscape.
Compliance is an essential, albeit potentially costly, task. Solvency II represents one such major challenge for the insurance industry. In accordance with these new regulatory requirements, all insurers operating in the EU must change their reporting methods and submit a complex set of quarterly and annual reports to their respective EU supervisory authorities in each country.
Many insurers have underestimated the complexity of Solvency II reporting and legacy IT systems have not been designed to fulfil Solvency II requirements. As part of Pillar III, insurers will have to develop a reporting framework and complementary systems that don't just deliver efficient, accurate and auditable QRT reporting, but can also be easily integrated into a firm's existing IT infrastructure.
Swiss Re Solvency II contract
In November 2012, management and technology consultancy BearingPoint announced the signing of a major contract with Swiss Re for the implementation and use of BearingPoint's ABACUS/Solvency II reporting solution. This standard software package enables comprehensive regulatory reporting in accordance with the new EU Solvency II requirements.
Built on BearingPoint's ABACUS platform, which is widely used in European countries to address Basel II requirements, it offers data collection, validation, preparation and Solvency II supervisory reporting - quantitative and qualitative - and comes preconfigured with business logic to help reduce an insurer's investment in software development and implementation.
ABACUS/Solvency II will be deployed across the Swiss Re operating entities that are subject to Solvency II requirements. The contract covers licence fees, consulting/implementation support and yearly maintenance.
"Choosing an established, reliable solution reduces risk and the total cost of ownership for Swiss Re," said Réjean Besner, Swiss Re managing director and Solvency II programme manager, on the announcement of the partnership.
Patrick Maeder, partner and firm-wide insurance segment leader at BearingPoint, felt that the deal was a clear indication of the strength of BearingPoint's value proposition.
"Through its ongoing ABACUS enhancements, BearingPoint is demonstrating its commitment to work closely with insurers and regulators to stay at the forefront of regulatory reporting technology and expertise," he said.
ABACUS: insurance benefits
BearingPoint developed its pan-European reporting solution for Solvency II through close collaboration with insurance industry representatives. ABACUS offers a number of additional benefits to insurers, such as flexible data consolidation across complex IT landscapes, statutory and management reporting functions, multi-language capability, as well as a Europe-wide network of Solvency II consultants.
Furthermore, revisions due to regulatory changes are performed once centrally within ABACUS, thereby helping insurers avoid the need for continuous adaptations and testing in-house. This feature is appealing not only to global players such as Swiss Re, but also to small and mid-size insurers across Europe who otherwise face the cost and risks of trying to 'go it alone'.
BearingPoint: driven by excellence
BearingPoint currently employs 3,500 people in 15 countries. As an independent firm with European roots and global reach, the consultancy serves leading companies and public sector organisations worldwide to align and optimise processes, and IT and operating models with business strategy.
Driven by a strong entrepreneurial mindset and desire to create long-term partnerships, BearingPoint's consultants are committed to delivering excellence and value to their clients. The firm's approach to working with clients is highly collaborative and designed to improve business performance, from strategy through to execution.