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Insurance regulators have made the Own Risk and Solvency Assessment (ORSA) into one of the global Insurance Core Principles that need to be adopted in all countries.

By Dave Ingram

Several countries have already adopted an ORSA requirement and in all cases, there is a need for a report to share with the regulator that documents the ORSA process.

The ORSA report itself is an example of risk management disclosure. A company that has no history of disclosure of risk management information may struggle

Starting January 1, 2015, insurers across the United States are subject to a National Association of Insurance Commissioners (NAIC) model law requiring them to annually submit an Own Risk and Solvency Assessment (ORSA). ORSA is a self-assessment of sorts, requiring large and medium-size insurance groups* to report on their current and future risk management process.

ORSA Model Act outlines a few basic dimensions on which insurers will be analyzed. They include (1) effectiveness of risk management

Having standardized risk assessments and well documented mitigation and monitoring activities will equip your organization with a lot of risk intelligence. The question becomes, how do you report all of this information to your board and communicate it to your commissioner in a way that demonstrates the value of your ERM program? First, risk managers must be able to demonstrate how risks across the organization roll-up to impact the Board’s strategic objectives; and second, ERM functions must tr

As we move into the 4^th step of ORSA implementation, Risk Monitoring, Control, and Action Plans, we begin to see the importance of adhering to best practices when executing Risk Culture and Governance, Identification and Prioritization, and Risk Appetite and Tolerances.

With the necessary structure in place to track and collect risk intelligence, the next step involves orchestrating a plan for improvement. Why is a plan for improvement so critical? Besides limiting the risk exposure of your organ

The first step in the Risk Management and Own Risk and Solvency Assessment Model Act (RMORSA) implementation, Risk Culture and Governance, lays the groundwork and defines roles for your risk management function. The second step, Risk Identification and Prioritization, defines an ongoing risk intelligence process that equips an organization with the data needed for risk based decision making.

The engine behind this process – the enterprise risk assessment – isn’t a new concept, but organizations a

The National Association of Insurance Commissioners adoption of the Risk Management and Own Risk and Solvency Assessment Model Act (RMORSA) requires insurance organizations to take a broader approach to risk management. As US insurers begin to mobilize their efforts to comply with the regulation by the 2015 deadline, it’s important for insurers to take a step back, leverage their existing risk management operations, and develop their RMORSA efforts with a mind to the future.

The groundwork for RM