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Gartner Solvency II Market Guide Shows There is Still (a little) Time to Prepare

 

The deadline for Solvency II compliance for EU insurers is January 2016. With time quickly running out to implement a solution before the deadline Gartner has just published a Market Guide that describes 20 vendors that provide Solvency II solutions.

 

Time is Running Out

So, if you are still not fully prepared for all three pillars you still have some time but time is running out, especially depending on what solution you choose. What is apparent in the report is that the breadth of solutions and complexity to implement vary greatly. So, it is important to make the right choice especially with the deadline creeping closer.

 

Be Cautious About Gartner’s Definition of Viability

One area that can be a bit misleading in this report (in my opinion, not Gartner’s) is the viability scores. Most of the smaller vendors received low scores on viability while the larger vendors received higher scores. Yet, several of the smaller vendors (Tagetik specifically) have greater capabilities, market reach and deployment options than the more “viable” large vendors.

 

From my perspective viability should take into consider the financial viability of the company, trends in customer acquisition specific to Solvency II, market reach across the EU, and customer satisfaction. A small company that excels in these areas is a much more “viable” choice for a Solvency II solution than a multi-product suite that requires multiple licenses, integration, and IT support to successfully implement.

 

Use the Report to Expedite Your Selection

While I respectfully disagree with Gartner on the viability topic, I definitely believe this research is a good asset for those looking for a complete Solvency II solution or looking to supplement an existing Pillar 1 solution to address Pillar 2 and Pillar 3. Take advantage of the research done by Gartner to find the best solution that has the capability to meet the requirements quickly enough to meet the pending requirement with confidence.


A Gartner recommendation to keep in mind

Here are a couple of recommendations that Gartner makes that I think are very important. There are in the report but one that stands out for me is below.

 

“Create a holistic Solvency II architecture covering data integration and risk management, as well as regulatory and internal reporting.”


Here it is important that the solution meets your Solvency II requirements but also can be leveraged for other reporting requirements. Don’t create yet another disconnected reporting process, make sure you can address multiple reporting requirements from one solution. This will eliminate the manual error checking. You will find several other good recommendations in the report that will help you make sure you are considering the factors that are most important for your business.

 

High Capability Scores

I think the decision should be much more a business decision than a technology decision. It is more important to be able to manage the process easily and accurately than the best fit with your IT infrastructure. Don’t trade capability and ease of implementation just to stay with your preferred vendor. In the report Gartner states about suite solutions:

 

“However, in our opinion, there will be very few cases where an insurer would purchase the entire solution stack from a single vendor due to risk or technology considerations. Insurers will usually integrate applications from different solution providers. These solutions may also not fit the budget restrictions of Tier 2 or Tier 3 insurers.”


Tagetik is ranked at the top for Pillar 2, Pillar 3 and General Capabilities. We’ve been the choice of more than 100 companies for Solvency II reporting and demand has not waned even with the deadline less than six months away. The rapid implementation time and simple deployment in multiple IT environments of our prepackaged solution is becoming more important in the selection process as the deadline comes closer.

 

Suite Vendors = Multiple Products + Complexity

Some suite vendor’s solutions score well across the board of criteria capable but are very IT and technology intensive so solutions from your preferred vendor may not be the best choice.

 

For example, Gartner says “IBM's portfolio of Solvency II solutions consists of various offerings (some of them being generic) that can be licensed separately covering wide aspects of enterprise risk management (ERM).” So, separate licensing, separate products, integration, and high IT and consulting costs should be factored into the decision and may not be conducive to meeting the tight deadlines insurers face.

 

Educate Yourself and Move Forward…Quickly!

Use the Gartner Market Survey as a catalyst to take action soon, before it is too late. Think about the best fit for your organization to meet the pending deadline and how the solution will fit into your technology strategy and your overall reporting strategy (not only Solvency II). If you do this you will get a solution that will address the pressing need and be a reporting platform for additional reporting demands that are no doubt looming on the horizon.

 

Tagetik for Solvency II

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