Some standard fare in there (bearing in mind it was 60 companies polled, split around 50/50 life/non-life)
- Some smaller companies yet to commence board briefings
- Implementation planning is currently priority 1
- Increase in the number of companies considering restructure (from subs to branches)
- Shift in product lines or pricing anticipated in order to shift the risk of guarantees on to policyholders (which doesn't sound like the desired outcome at a political level)
- Two thirds introducing new risk mitigation techniques (I guess more reinsurance)
- IT upgrade highlighted as one of the biggest costs - as Pru showed us today, shifting things from legacy to warehouse is a sharp shock, but it is surely good for the industry to do this work, even if it is at the point of a gun
- Areas of most concern are sponsorship and engagement and clarification (or lack of) from FSA/EIOPA
And some more startling aspects;
- One non-life company has no knowledge at all of Sol II at board level!
- Despite 80% of respondents going for full or partial internal models, Data Quality and use test featured low on the list of priorities (some guys will have a pretty busy 2012 if they are leaving this till late!)
- One of the 4 largest respondents is considering relocation (my monies on Pru)
- Larger insurers were budgeting for up to £75m - as my earlier posts highlighted, Old Mutual, Aviva and Pru have already laid down more than 50% of that in 2010 - lets hope for their sakes that was the data warehousing spend, and it's all finished!