Own Risk and Solvency Assessment
What is Own Risk and Solvency Assessment?
Often abbreviated to ORSA, Own Risk and Solvency Assessment is a set of internal processes aiding decision-making and strategic analysis. Own Risk and Solvency Assessments are driven by regulatory requirements, capturing best risk management practice conducted by companies.
Where have you heard about Own Risk and Solvency Assessment?
ORSA is one of the global Insurance Core Principles required by insurance regulators. Since 2011, the world's specialist insurance market, Lloyd's has required all managing agents to submit an annual ORSA report covering each syndicate under management.
What you need to know about Own Risk and Solvency Assessment.
Own Risk and Solvency Assessments provide internal stakeholders with invaluable information, helping them to effectively manage risk, capital and solvency in an insurance undertaking. It is suggested that ORSA reports include a description of the insurer's risk management framework, an insurer's assessment of risk exposures and an assessment on group risk capital and prospective solvency. Companies without a history of disclosure of risk management information may find it challenging to create a substantial ORSA report communicating their efforts in risk management.