Risk Solutions
Own Risk & Solvency Assessment (ORSA)
This note provides high-level recommendations for insurance companies when developing or enhancing their Stress and Scenario Testing (SST) framework.
In Thailand, 2019 will be a year of considerable regulatory changes pertaining to risk management. The new risk-based capital framework will replace the current one, and insurance companies will be required to implement ERM and ORSA.
EIOPA has recently issued a supervisory statement providing feedback on the ORSAs submitted in 2016.
The Isle of Man regulator is consulting with industry on introducing the ORSA as a new regulatory tool for local insurance and reinsurance companies.
The assessment of the appropriateness of the standard formula is a key part of the Own Risk and Solvency Assessment (ORSA) process under Solvency II.
This article provides a short overview of the structure of the Standard Formula, presents a suggested framework and worked examples, and discusses challenges and pitfalls to be considered.
