HSBC banks on IBM to it help prepare for Solvency II

Insurance firms must be able to comply with new risk management rules by 31 December 2012

HSBC has signed a deal with IBM to create a data management and analytics model to ensure compliance with Solvency II legislation, which has to be implemented by December 2012.

Solvency II is the EU regulatory directive aimed at ensuring insurers fully understand the risks inherent in their business, and requires that they allocate sufficient capital to cover those risks.

IBM's data management and analytics model claims to allow HSBC to demonstrate quality, availability and traceability of all key regulatory data and associated reporting.

"Preparation for Solvency II is critical for our business and demands specialist expertise - we are pleased to be working with IBM on this vital activity," said Stephen Coombes, chief financial officer, HSBC Insurance UK.

The IBM model will utilise business analytics software, IBM Cognos 8 Business Intelligence, as the reporting mechanism between the new database and system users.

HSBC hopes that this will allow them to demonstrate strong control around reporting.