European Insurance Regulations and the Implications for IT

July 25, 2005

Abstract

London, UK July 25,  2005

Celent proposes a strategic approach to compliance to lighten the burden of regulation.

The UK insurance sector is under pressure from regulators in Washington, Brussels, and London. New regulations such as the Prudential Source Book, Insurance Conduct of Business Rules and the draft of Solvency II create a landscape of regulations that will be difficult to navigate. The approach to addressing compliance varies across the industry. There is significant strategic value in using both compliance and IT to help business understand the importance of infrastructure improvements.

In a new report, , Celent reviews an alternative approach and shows how compliance and business issues converge onto IT challenges. The report outlines how FSA, EU and US regulations are impacting UK insurers and brokers.

"The FSA and its global counterparts are here to stay," states Catherine Schmitt, Celent analyst and author of this report. "No business likes to be regulated and there is currently considerable focus on the onerous and costly burden of compliance. But if IT focuses on mapping key areas such as data quality, network security and financial transparency to key business initiatives, then compliance becomes an important ally for IT.’

Celent’s report shows how the convergence of issues supports the design of strategic projects while achieving compliance. This approach ensures re-use of components which can significantly lighten the compliance burden.

The report is 20 pages long and contains one figures and five tables. A table of contents is available here.

of Celent's Property/Casualty Insurance and Life/Health Insurance research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

        

Send mail to info@celent.com with questions or comments about this Web site.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

London, UK July 25,  2005

European Insurance Regulations  And The Implications For IT

Return to report Abstract

Executive Summary 3
Introduction 4
Background: The Birth of The FSA 5
  A Watchdog is Born 5
  The Watchdog Bites 6
  The Watchdog Bites 7
UK Regulatory Environment Overview 8
  Directives 8
  Principles 9
  Future Regulations 9
European Regulatory Environment Overview 10
  EU Directives 10
  Draft EU Directives 11
US Regulatory Environment Overview 12
  Sarbanes-Oxley 12
Making Compliance Work For You 13
  IT Meets Compliance 14
  Business Meets IT 16
  The Great Convergence 18
Concluding Points 18
Objectivity and Methodology 19

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