ORSA: Design and Implementation

An Own Risk and Solvency Assessment (ORSA), is an internal process undertaken by an insurer or insurance group to assess the adequacy of its risk management and current and prospective solvency positions under normal and severe stress scenarios. Globally, ORSA regimes are now in force or under development in most of the significant insurance markets worldwide. In Europe, the ORSA is part of Solvency II as a key component of Pillar 2.

Bogie Ozdemir, Vice President at Sun Life Financial where he is developing enterprise ORSA, provides a straightforward approach to the understanding, management, and implementation of this requirement. You will learn how to build a practical implementation plan, utilise existing resources and capabilities to support your ORSA, and learn how to manage the business impact and benefits of ORSA implementation.

The lack of prescriptive guidance around ORSA brings with it its own set of challenges. Aimed at ensuring insurers have a sound understanding of their individual risk profile, and have the appropriate measures in place to address them, ORSA requires insurers to undergo a rigorous self-assessment and align capital requirements accordingly.

This guide will provide you with this prescriptive guidance with chapters including:
- The Requirements of OSFI
- ORSA Key Elements
- Enterprise Risk Management Frameworks
- Using the Three Lines of Defence Framework
- Available Capital under ORSA
- Risk Appetite
- Stress Testing
- Strategic Impact
- Utilizing ORSA in Effective Risk and Capital Management
- Co-managing Regulatory and Economic Capital
- Enhancing Risk Appetite and incorporating Earnings at Risk
- Effective Capital Planning
- Tail Risk Management