2: Take control of risks and regulations
The low-yield environment has pushed many insurance companies to take on more investment risk, whether it is more equity, credit or liquidity risk, in order to support the portfolio yield. With this comes an increased focus on risk management and the need to have a holistic view on risk exposures.
Additionally, to manage the volatility of capital requirements, liquidity and P&L, it is no longer enough to have a view on the current risks and capital requirements of the portfolio; you also need to be able to forecast the long-term impact of different market and reinvestment scenarios for your different accounting frameworks.
Furthermore, a tsunami of regulatory initiatives has put pressure on insurance firms and more is to come. In the past years, we’ve seen the introduction of Solvency II, IFRS 9 and 17, EMIR, SFTR, the phasing out of LIBOR, the introduction of SFDR and new ESG regulations. Each new piece of legislation requires time, resources, significant cost and often spans numerous areas of your business, which all use their own technology, processes, and data sources.
Why partner with SimCorp
Good risk management starts by having a complete view of all your exposures across all assets and entities. SimCorp’s multi-asset platform provides valuable insights into the sensitivities of your total portfolio through a full suite of both standard and complex risk analytics, flexible aggregation capabilities and powerful stress-testing capabilities.
Our Investment Forecasting solution allows you to take decisions proactively to control the volatility of your balance sheet and P&L and to preserve and optimize your capital and liquidity over a long-term horizon and under different market and reinvestment scenarios.
One integrated system also greatly facilitates the consistent and efficient implementation of group-wide regulatory compliance and governance. With offices in over 20 countries, we understand each geographical region and its specific regulatory constraints. Our clients have a range of regulatory services at their disposal, including access to our Regulatory Center of Excellence, a team of regulation experts who continuously monitor the regulatory landscape and offer standardized solutions based on market best practices. We will also offer a standard solution for the SFDR reporting later this year.
Furthermore, our best of breed accounting solution with duplicate ledger and multiple books is unparalleled in its global coverage of both international and local accounting and tax frameworks. It covers all asset classes natively and is compliant with the latest regulatory changes, including IFRS9, CECL, hedge accounting and more.