Deloitte IT Solutions for Solvency II Survey 2014.

Our evaluation criteria

• Data collection, quality control and transformation

• Data preparation (economic scenario generation, hypothesis setting, model points building, etc.)

• Calculation (valuation of assets and liabilities, calculation of capital requirements, etc.)

• Reporting (internal and external)

• Data storage and archiving

• All lines of business (life, non-life and health) are included in scope

Introduction

In 2010 Deloitte conducted our initial market survey of IT packages for Solvency II. Our survey highlighted that the market was segmented and evolving rapidly. Several packages focused on a specific functional area (economic scenario generation, underwriting and market risk for life, pure market risk, data management, etc.) whilst others had more balanced coverage across multiple functional areas. The next 18 months will see many (re) insurance firms make strategic decisions about the design and delivery of their Solvency II business and IT architecture.

In 2014, we conducted a follow up survey of 24 IT packages for Solvency II to assess the current maturity of the market and individual product developments across a number of functional and non-functional criteria. This survey is unique in terms of the robust evaluation methodology that we employ and positions Deloitte with the knowledge and insight to guide and support you through the end to end Solvency II project lifecycle.

Our approach

We have adopted a structured and robust 4 step methodology to ensure that we have an objective and thorough knowledge of the actual demonstrable qualities of each product (and not just the marketing material).

1. Short listing2. Request forinformation

3. Analysis & demonstrations

4. Validation & report

• Identification of the universe of relevant solutions

• Define the short list of participants

• Send request for documentation to vendors

• Send RFI (+500 questions) to vendor

• Analysis of RFI responses

• Vendor product demonstrations

• Validation of our summary evaluation with each vendor

• Publication of high level results

Contacts

Benefits

The results of this survey will help (re)insurers of all sizes and lines of business with the following challenges:

• During build or buy decisions: determine if the market of software packages provides a relevant solution for components of their IT architecture

• Facilitate all steps of a package selection process (e.g. short list directly identified thanks to the solutions classification, RFP questionnaire built based on the survey’s RFI)

• Structure and define requirements in the case of an internal development

• Benchmark and compare products

Donal LehaneConsulting Partner +353 (0)1 417 2807 dlehane@deloitte.ie

Glenn GillardAudit Partner +353 (0)1 417 2802 ggillard@deloitte.ie

John Kilbride Consulting Senior Manager +353 (0)1 417 2485 jkilbride@deloitte.ie

Deloitte is a multidisciplinary service organisation which is subject to certain regulatory and professional restrictions on the types of services we can provide to our clients, particularly where an audit relationship exists, as independence issues and other conflicts of interest may arise. Any services we commit to deliver to you will comply fully with applicable restrictions.

Due to the constant changes and amendments to Luxembourg legislation, Deloitte cannot assume any liability for the content of this leaflet. It shall only serve as general information and shall not replace the need to consult your Deloitte advisor.

About Deloitte Touche Tohmatsu Limited:

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Deloitte provides audit, tax, consulting and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence.

© 2014 Deloitte General Services

Designed and produced by MarCom at Deloitte Luxembourg

2. Collection 3. Preparation 4. Calculation 5. ReportingET

L

Dat

a qu

ality

Life TP

Non life TPPremium

Health Internal

Market Internal

Default Internal

Op. Internal

Health TP

Assets

XBRLs

Internal Reporting

Life Standard

Health Standard

Market Standard

Default Standard

Op. Standard

Non life Standard

1. Data sources

6. Operation and monitoring

7. Data historisation and archiving

Security Workflow & monitoring Scalability & performance Integration

Data storage

Non life TPC.O.

Agg

rega

tion

Capital planning KRIStress test& scenarios

QRTs

QualitativeReporting

Life Internal

Non life Internal

Liabilities data

Assets data

Accounting data

External market data

Other inputdata

Model points

Experienceanalysis

Portfolioreplication

ESG

Universe of solutions

RFP, Demos, PoC

Short list Selected package

Sample results from the survey

• 24 products

• Life & non-life

• Identified strengths and weaknesses across the IT value chain

• End to end functional coverage

• Validated by demonstrations and our hands on implementation experience

RFI

Identify the relevant short list of vendor products

The 500+ questions in our questionnaire can accelerate the development of a client RFP

Deloitte Global Serviceswww.deloitte.com