Our ORSA modelling module is now available to SCR module customers. Please get in touch for a demo of our ORSA functionality, which enables to you to setup multi-dimensional stress tests and see the impact on your SCR and SCR ratio. The Solvency II ORSA (also Solvency UK) module allows you to project the stresses over several years. You can setup as many scenarios as you can conceive, including writing entirely new business lines or taking on new investment classes (not just modification of existing).
Key aspects of the ORSA:
- Risk Assessment: ORSA requires insurers to identify, measure, and prioritize material risks, including both internal and external factors.
- Strategic Alignment: It links risk assessment with business strategy, capital management, and stress testing, ensuring that risks are considered in strategic planning.
- Prospective View: ORSA takes a forward-looking perspective, typically considering the next 3-5 years, to assess future capital needs and solvency.
- Quantitative and Qualitative: ORSA involves both quantitative assessments (e.g., calculating capital requirements) and qualitative descriptions of material risks.
- Regular Reporting:Insurers are required to submit the results of their ORSA to the supervisory authority, usually on an annual basis.
Purpose of Solvency II ORSA:
- Demonstrate solvency: Solvency II ORSA helps demonstrate that the insurer has sufficient financial resources to meet its obligations to policyholders and other stakeholders.
- Inform decision-making: Solvency II ORSA provides valuable information for the board and senior management to make informed decisions about the company’s strategy, risk appetite, and capital management.
- Embed risk management: It encourages a strong risk culture within the organization by integrating risk management into day-to-day operations and strategic planning.
For BoE update on Solvency UK ORSA (November 2024) please follow this link:
If you would like to either book in a demo or take trial of our ORSA software solution, please leave your details here: