InsuranceERM Awards 2022 - UK & Europe
The next few years will see significant developments in governance, regulation and compliance (GRC) for insurers. For example, IFRS 17 will become the mandatory reporting standard in many territories and the targeted LDTI changes will become mandatory in the US.
Across Europe, capital standards are also seeing an overhaul as Solvency II reforms are under consultation, and in other territories, particularly Asia, new capital regimes will be approved and implemented.
The seamless and effective way Moody’s Analytics is enabling insurers to meet their requirements for more frequent and timely regulatory reporting earned it this year’s InsuranceERM award.
Its RiskIntegrity Suite, for example, is designed to address the enterprise risk and solvency management needs for insurance companies, including both regulatory and internal management requirements.
The RiskIntegrity solution for IFRS 17 also helps insurance companies make the transition from current insurance accounting frameworks to IFRS 17.
For IFRS 17 reporting, Moody’s Analytics says it has redesigned actuarial roll-forward reports for direct and reinsurance contracts.
Commenting on the main GRC developments that should be on insurers’ radar over the next two years, a spokesperson for Moody’s Analytics says: “Globally, the biggest development will be in ESG and climate. Some territories have already adopted recommendations, such as TCFD [Task Force on Climate-Related Financial Disclosures] on a best-efforts basis, and others have mapped out phased implementation dates.”
Already in the EU, the spokesperson says the EU Taxonomy has come into effect alongside the Sustainable Finance Disclosure Regulation. Larger financial institutions in many other countries are also likely to have to begin TCFD reporting.
“Alongside rising regulation, there is also greater interest from shareholders, customers and other stakeholders,” adds the spokesperson.