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Flashcards in ORSA Deck (5):
1

Sections of ORSA

1. Description of insurer's risk management framework
2. Insurer's assessment of co's risk exposure
3. Group assessment of risk capital and prospective solvency assessment

2

Goals of ORSA

1. Provide group level view of risk and capital
2. Encourage good risk management
3. Consistency of ERM programs across the industry

3

Section 1: Description of Insurer's risk management framework

Risk...
Taxonomy
Identification and prioritization
Culture and governance
Appetite, tolerance, limits
Reporting and communication
Monitoring process and methods
Management controls

4

Section 2: Insurer's assessment of risk exposures

1. use quantitative and qualitative measures
2. assess risks under both normal and stressed conditions
3. should be consistent with how the insurer manages its business
4. not prescribed, not defined stress tests

5

Section 3: Group assessment of risk capital and prospective solvency assessment

Goal: show the insurer has sufficient capital to meet its needs given strategy, risk tolerance

Describe any management actions the insurer may need to take