Glenn Lottering is senior director EMEA for Oracle Insurance

Solvency II is putting pressure not only on European insurers, but also multi-national insurers to add a new level of rigor to their finance and risk processes. While speculation about further delays to the implementation date for Solvency II (possibly 2016) continues to circulate, the European Insurance and Occupational Pensions Authority (EIOPA) will implement some Pillar II elements in 2014 – ultimately intensifying this pressure, as can be seen by the Own Risk and Solvency Assessment (ORSA) reporting requirements evident today.

The potential delay certainly creates a degree of uncertainty.  To meet market demands and facilitate compliance in the short- and long-term, however, insurers must begin to think beyond "getting the numbers out" and redefine the relationship between risk, finance, and the business.  Those that fail to seize this opportunity will not only miss the chance to evolve the sophistication of their business forecasting and understanding of market dynamics, they will, more importantly, leave themselves at risk from both the competition and the market itself.