The organisation of insurance companies, mutual insurance companies and social security institutions will have to change with the application of the Solvency II Directive.

There are in fact many problems:

• Accounting for elements that are actually permitted for equity requirements. Dealing with hybrid debts will be a defining question for some parties involved, such as mutualist organisations
• Producing the multiple reports required for risk governance. The functional complexity of these reports will require major overhauls in terms of industrialising and making internal processes reliable.
• Making the ORSA reliable. Every insurance company must provide the Autorité de Contrôle Prudentiel (French Prudential Control Authority) with a detailed description of the calculation methods used in the ORSA (Own Risk and Solvency Assessment). The implementation of this communication tool represents an organisational mission in its own right.

In addition, some insurance organisations managing both private and semi-private systems must meet Solvency II requirements and increasingly strict Social Security and even Agirc-Arrco regulations.

The slowdown in growth of a highly competitive sector adds to these regulatory constraints, requiring greater control of general costs and the industrialisation of back-offices.

Group movements, merger-acquisitions and partnerships undertaken or announced in particular by mutual insurance companies and social security groups will involve strategic and organisational projects.

To meet these various challenges, Headlink is now assisting several companies with the operational definition of their Solvency II risk management system. We are also working on professionalising their back-office systems by applying procedures that have proven themselves to be effective in the industrial sector such as, for example, the Lean Management and Six Sigma methods.