The capital requirements imposed by Solvency II - Pillar I - have tended to hog the limelight when it comes to the new regime. This is understandable given the potential for these new requirements to impact business and profitability. Also, the calculations require extensive new data as well as sophisticated computational abilities. But Solvency II's other two pillars, II and III, are just as important and in many ways, equally challenging for insurers to implement.
This article studies why insurers need to overhaul their approach to dealing with the flow of data, if they are to comply with all of the requirements of Solvency II.