Key contributions of own risk solvency assessment (ORSA) to the improvement of the erm of insurance companiesa practical and international vision.
- Rivas López, María Victoria
- Heras Martínez, Antonio José
- Peña, Víctor de la
ISSN: 0534-3232
Any de publicació: 2013
Número: 19
Pàgines: 1-30
Tipus: Article
Altres publicacions en: Anales del Instituto de Actuarios Españoles
Resum
EIOPA (European Insurance and Occupational Pensions Authority), NAIC (National Association of Insurance Commissioners- US regulator) OSFI (Office of the Superintendent of Financial Institutions -Canadian regulator) and other regulators are working on a new regulatory requirement called ORSA (Own Risk Solvency Assessment). ORSA is designed to improve the risk management, reporting and assessment process of insurance companies, especially in the decision-making process with regard to the level of solvency according to their risk exposure. In this presentation the differences and similarities between the jurisdictions are described. The objective of the regulators is to improve the stability of the insurance sector establishing an adequate risk management requirement that includes important aspects such as definition of the risk appetite, validation of the solvency requirement using, for example a backtesting methodology, stress testing, scenarios projection and the inclusion of technique such as reverse testing. In addition, the analysis of the main contributions of ORSA for the insurance companies is developed, highlighting points such as stress, scenario projection and the back-testing process with the aim to accurately assess the solvency capital requirement according to the situation of the company. Practical examples and real-life business cases will be provided to illustrate the process.
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