"It is very important for insurers to assess the adequacy of the risk management framework to identify the gap between the current and required resources, then define an enterprise-wide alignment program and invest in capabilities supporting Solvency II compliance," said Mr. Michellod.

"As long as an insurance company performs this task than I think it is easier to select the tools that are imperative to improve the risk management framework," he observed.

Mr. Michellod explained that under the new regulations, insurers will need to demonstrate through their risk management analysis that they have adequate capital in reserve. If the proof is inadequate, insurers would be subject to increasing capital requirements, or not be allowed to reduce what they have.

When it comes to the data that will drive these evaluations, Mr. Michellod said integration of the disparate parts of an insurer's technology system will be one major challenge, along with ensuring its accuracy.

There are a number of "unique and different tools" on the market to satisfy the specific need of insurers, he continued. Without fully developing these systems, he said, it will be difficult for insurers to make an accurate risk management analysis and meet regulators expectations.