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 right tooling ensures an efficient and adequate assessment.
ORSA is a central part of Solvency II legislation, and the aim is for insurers to gain a complete picture of the risks in the short and long term. This will prevent the financial position from deteriorating and the insured from feeling any consequences. With a validated model, you can efficiently carry out the projections of your solvency position.
Triple A has developed an ORSA tool for testing risk scenarios and financial projections in the ORSA. This provides an appropriate and sufficient estimate of the future development of the Solvency II balance sheet, the eligible equity capital and the solvency requirement (SCR and MCR) for various economic and insurance scenarios and management actions. The ORSA tool is based on the standard model of Solvency II, contains the necessary calculations and input for projections, and is validated every year by an external party.
The tool allows you to look ahead to the next three to five years through the lens of different scenarios and possible interventions. It also takes into account the company-specific risk profile, the different types of risk tolerances and your market strategy.
The ORSA tool gives you a developed and validated model, which several insurers have already begun using. With the ORSA tool, you can focus on the content of the ORSA process, the risk profile, and the strategy. In addition, you guarantee the correctness of the parameters used in line with legislation and regulations. We will be happy to discuss with you the extent to which the ORSA tool can be applied in your situation, without obligation of course.
Please contact Jasper Hoogenstraaten
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