The European Solvency II technology market is expected to grow to $1.34 billion by 2012, according to Chartis Research. The analysts at Chartis expect a compound annual growth rate of 17.1 percent.
Recent high-profile scandals, the global financial crisis, and specific EU Solvency II requirements will fuel this growth, according to Chartis. The company believes new requirements will have a profound impact on the technology strategy of many insurance companies. IT departments will need to review their strategies for enterprise technology architectures, data management processes, business intelligence, and analytics capabilities. Chartis also contends IT departments need to facilitate the integration of risk and finance functions and systems.
There are some important IT lessons to be learned from the recent Basel II experience in Europe, according to Chartis. With appropriate planning, insurance companies can turn Solvency II into an opportunity for implementing cost-effective, robust, and scalable IT platforms for managing risk, finance, and performance, the company explains.
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