Solutions ORSA Advice

ORSA Advice

As part of Solvency II, insurers carry out an Own Risk & Solvency Assessment (ORSA) at least once a year. They submit the corresponding reports to the supervisory authority De Nederlandsche Bank (DNB). In the ORSA, the insurer assesses the strategy, the associated risk profile and the solvency position for the coming years. ORSA provides the insurer and its shareholders with insight into the relationship between strategy, material risks, and the possible consequences for the financial position.

The ORSA directly results from the Solvency II regulations, and the aim is for insurers to gain a complete picture of both short and long-term risks. This will prevent the financial position from deteriorating and the insured from feeling any consequences. In doing so, ORSA is doing much more than just complying with Solvency II. You look at your company-specific risk profile, the tolerance for different types of risk and your strategy through the lens of different economic and business scenarios.

ORSA advice for insurers

A good ORSA process provides insight into the feasibility of your strategy and the impact on your financial results and capital position. This gives you the opportunity to adjust your risk profile. Adequate implementation of the ORSA process is complex. Triple A offers support in the implementation or in the assessment and review of the entire ORSA process:

  • Overall design of the ORSA and the substantiation and elaboration of scenarios;
  • Methods, parameters, and assumptions underlying the projection of technical provisions in the different scenarios;
  • Methods, parameters, and assumptions underlying the projection of required and available solvency in the different scenarios;
  • Including risk appetite in the ORSA report and incorporating it in the scenarios and projections;
  • Elaboration of the appropriateness test in which the insurer analyses the applicability of the standard Solvency II model for determining the required solvency (SCR);
  • Elaboration, plausibility, and calculation of recorded management actions;
  • Actuarial Function: various activities and reviews are carried out to fill the actuarial function.

In addition, we provide ORSA tooling that helps determine future projections of the solvency position under Solvency II principles for various scenarios and management actions.

Deployable to each part

Our experts have in-depth experience with dozens of insurers in all aspects of the ORSA process; from ‘first line’ implementation to ‘second line’ review and from actuary to strategy. Your result is an efficient ORSA process with a thorough understanding of the risk profile and its impact on your strategy, financial results, and capital position.

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