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The Actuary The magazine of the Institute & Faculty of Actuaries
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A third of insurers will change team structure under Solvency II

Some 35% of insurance companies have changed or plan to change their team structure as a direct result of the Solvency II directive, according to preliminary results from a survey.

20 OCTOBER 2015 | BY CINTIA CHEONG

Pensions workplace
Firms are required to allocate staff to specific key functions under Solvency II. © Shutterstock

John Hoskin, associate at Barnett Waddingham, said under the new regime insurers were required to allocate staff to specific key functions, and bigger firms were more likely than smaller companies to be re-organising teams.

Speaking at an event in London, Hoskin said Barnett Waddingham carried out the survey to discover how firms were reacting to Solvency II because there was “ongoing confusion” about roles and responsibilities.

He said the firms that were changing structures were doing so to align teams with responsibilities. 

Two thirds of respondents said the chief actuary would be responsible for the calculation of technical provisions and solvency capital requirements.

In terms of the typical “three lines of defence” of risk governance framework, the survey indicated mixed views of where the chief actuary should sit. 

Less than a fifth of respondents said their chief actuary would have a seat on the board, 88% said their chief finance officer and 44% said their chief risk officer would be in the boardroom.