Firms must revise insurance systems to meet regulations over the long term

European firms will need to revise their insurance systems as they attempt to meet new regulations over the long term, according to Aberdeen Group.

The analyst claimed new mandates, including Common Reporting (COREP), Financial Reporting (FINREP) and Solvency II, have had banking and insurance organisations scrambling for short term compliance solutions. It claimed firms will, however, need to identify systems, which can also meet the needs of a dynamic business environment, in the long term.

The report said: “Unfortunately, in the short term, many organisations will have to make do with what they have. These regulations are mandatory, and will require taking a lot of data from multiple sources and manually inputting them into spreadsheets. This is also not the ideal solution.”

Aberdeen claimed that spreadsheets are time consuming and can lead to mistakes, with employees also breaking formulas created by others. “Utilising them long term would be a nightmare. Unfortunately, that may be the only choice for some organisations today,” the report added.

The analyst advocated that firms deploy comprehensive solutions which will ensure efficiency and accuracy. The report said: “If all available data is not stored in one solution, it all must be integrated effectively. Integration models and services may be a better option for creating a cohesive environment.”