The optimization delivered nearly €70 million in capital savings; the strategic asset allocation review, €80 million in capital savings.
Like all EU insurers, this Italian provider was faced with dramatically altering its business model to comply with the Solvency II Directive, which requires insurers to strengthen their governance policies and key business processes. It also mandates new methodologies to assess risk and calculate solvency capital, and advanced IT and data infrastructure to support new risk management requirements. Firms are required to explain and justify each choice made to the regulatory board that governs the standard.
The company turned to BCG to help it navigate the required changes. Together, the team:
Capital optimization implied a detailed assessment of company-specific risks and delivered nearly €150 million in capital savings, leveraging on both business and methodological levers.