The Search for Solvency II Solutions

Solvency II, the European Union directive on capital adequacy and risk management for insurers, has made the headlines in recent months due to delays to its implementation. However, while much speculation has focused on the postponement of key deadlines, many industry participants are plowing ahead with their preparations. They are making progress on the mammoth data management challenges that Solvency II creates for asset managers, third-party administrators (TPAs) and their clients in the insurance industry.

One of the most challenging aspects of Solvency II is the requirement that asset managers provide granular, ‘look-through' data about their insurance clients' holdings across their portfolios. Many asset managers are instinctively reluctant to share this data with one another and TPAs because they feel it may expose elements of their investment strategy to competitors.

The challenges presented by the look-through requirements have been known for some time and there have been calls from the industry for a new utility infrastructure that asset managers can use to transfer the data. MoneyMate, a provider of data management services, is one of the vendors who has responded to these demands, by creating a platform which allows asset managers to retain control over who they share their data with.

Look-Through Utility

As part of MoneyMate's Solvency II Look-Through Service, asset managers decide which of their funds to list within the utility. Investors can search the utility for the information they need on funds. When they find the required funds, they use a graphical user interface to send the asset manager a request for permission to access data on the fund. The asset manager can then decide whether or not to grant access.