Assist the states, as requested and as appropriate, in implementing laws, practices and procedures, and obtaining personnel required for compliance with the standards. The orsa model act requires all insurers meeting certain size thresholds and their insurance groups which are defined to include those insurers and affiliates in an insurance holding company system to conduct an orsa, in accordance with the naic orsa guidance manual, annually. A regulatory guidepost to the future 3 getting started. Naic own risk and solvency assessment guidance manual general guidance each orsa process will be unique the orsa summary report will be used to gain a highlevel understanding of the process the report will be supported by the insurers internal risk management materials minimum the orsa summary report should discuss. Thoughts for a board members initial reading by david a. The orsa summary reports objectives lie in the underlying objectives of the regulation itself. Own risk and solvency assessment orsa presentations to occa nov. Jerbi, the academys a american academy of actuaries. Copies may be obtained from naic, 1100 walnut street, ste. This concept was also included in the naics revised orsa guidance manual, which, like the pilot program feedback, was released by the naic on january 30, 2014. This edition of the naic own risk and solvency assessment orsa guidance manual has been revised from the previous edition. Osfi by march 31, 2014 of expected orsa report 2014 filing date solvency ii orsa in force jan. This ss should be read together with ss4115, solvency ii.
Maintain and update the financial regulation standards and accreditation program pamphlet. Insurers that are not exempt from the requirement to conduct an orsa must submit an. Naic own risk and solvency assessment orsa guidance manual as of. New york considers changes to proposed erm and orsa regulation. The following summarizes the most significant changes since the july 2014 edition.
The number of companies participating in the pilot projects has also grown from 14 in the 2012 study to 28 in the 2014 study. As the naic describes in the orsa guidance manual the manual, the summarized primary goals of the orsa are to foster an effective level of erm at all insurers and provide a. Naic own risk and solvency assessment orsa guidance manual. Financial analysis handbook 2015 annual 2016 quarterly. Insurers that are not exempt from the requirement to conduct an orsa must submit an annual orsa summary report to the nydfs, beginning on december 1, 2015, and the summary report must be prepared in a manner consistent with the guidance manual. In addition, cna naic own risk and solvency assessment orsa guidance. The orsa manual, if adopted by the naic and then individual states, would apply the orsa requirement to standalone insurers with premiums exceeding the manuals exemption threshold. National association of insurance commissioners own risk and solvency assessment orsa guidance manual, 2014 2017 edition. All insurers to complete their first orsa by december 31, 2014. One of the naics goals is to avoid creating duplicative regulatory requirements for internationally active insurers.
Naic orsa and risk capital southern california casualty actuarial club winter 2014 meeting. Per the naic orsa guidance manual, the analysis of an insurers group assessment of risk capital requirements and associated capital adequacy description should be accompanied by a description of the approach used in the analysis, including that approachs key methodologies, assumptions. Although development of such supervisory guidance has just begun, some of the guidance is expected to be centered on the five key principles developed in 2012 as. Insurers that are not exempt from the requirement to conduct an orsa must submit an annual orsa summary report to the dfs, beginning on december 1, 2015, and the summary report must be prepared in a manner consistent with the guidance manual. The naic adopted its orsa guidance manual which provides insurers and regulators with guidance on what an orsa should entail and what an orsa summary report should address during the. Aug 14, 2015 the naic believes the summary reports submitted were generally in compliance with the naic orsa guidance manual. The orsa summary report must be signed by the companys chief risk officer or comparable executive. Naic orsa overview orsa own risk and solvency assessment naic model law adopted in september 2012 naic guidance manual revised march 20 effective date. Orsa guidance manual adopted by naic in march 2012.
Naic orsa feedback pilot project pinnacle actuarial resources. Naic orsa model act 2012 2015 naic orsa requirements effective jan. As the naic describes in the orsa guidance manual the manual, the summarized primary goals of the orsa are to foster an effective level of erm at all insurers and provide a grouplevel perspective on risk and capital. The naic orsa requires the existence of an erm framework according to the naic orsa guidance manual, one of the two primary goals of orsa is. Financial regulation standards and accreditation f committee.
This text is still under consultation, but can anticipate the impact of level 3 measures on the orsa. Naic orsa feedback pilot project pinnacle actuarial. The naic releases draft orsa model act for public comment. Steve johnson of pennsylvania told the task force that the. Under the model the commissioner can request an annual filing of orsa summary reports. Documentation and supporting information must be maintained and made available upon examination or request. New york proposes erm and orsa regulation saul ewing. Relevant studies, guidance and naic policy positions on. Although development of such supervisory guidance has just begun, some of the guidance is expected to be centered on the five key principles developed in 2012 as part of the naic orsa guidance manual. National association of insurance commissioners via email. Article 16 system, or article 17 system must also conduct an annual orsa, consistent with the process set forth in the orsa guidance manual the guidance manual published by the naic. Produce, maintain and update the naic accreditation program manual to provide guidance to state insurance regulators regarding the official standards, policies and procedures of the program. Provides for the confidentiality of documents and other information that are obtained by, created by, or disclosed to the commissioner under this part, and provides that they are not public records or subject to. Orsa guidance manual requires the insurer to estimate its prospective solvency.
The own risk and solvency assessment orsa a regulatory. Orsa within the core of the solvency ii directive, the own risk and solvency assessment orsa appears as a proven decision and analytic tool and a central element assesses to define the specific risk profile of the insurance company. Foster effective enterprise risk management provide a group level perspective on risk and capital required of. Description of the insurers risk management framework section 1 was the most complete, while sections 2 insurers assessment of risk exposures and 3 group assessment of risk capital and prospective solvency assessment. A change in the orsa guidance manual shall be effective on the january 1 following the calendar year in which the changes have been adopted by the naic. Confirm are registered service marks of the national association of insurance commissioners. At its 2012 spring meeting, the naic adopted its orsa guidance manual the manual. Requires an orsa summary report to be prepared consistent with the orsa guidance manual.
Ensuring readiness for the us own risk and solvency. The following summarizes the most significant changes since the march 20 edition. January 1, 2015 a new regulatory requirement intended to. Saenz, on behalf of the american academy of actuaries1 orsa subgroup, i appreciate the opportunity to provide comments on the march 2014 draft, guidance manual for the own risk and solvency assessment orsa. Naic update winter 20 top stories corporate governance model hits snag. The financial regulation standards and accreditation f committee. Regulatory bodies naic own risk solvency assessment orsa. Insurers may include in the orsa summary report information developed as part of their strategic planning and may include pro forma financial information that displays possible outcomes as well as projected capital adequacy in those future periods based on the. The model requires companies over a certain size threshold to conduct an annual own risk and solvency assessment consistent with the orsa guidance manual adopted in 2011. The national association of insurance commissioners has completed their third own risk solvency assessment orsa feedback pilot project.
A regulatory guidepost to the future 1 the own risk and solvency assessment orsa, in brief sometime in 2015, the first american insurer will file with its domestic regulator the firstever own risk and solvency assessment orsa summary report to be formally filed in the united states. May 04, 2014 per the naic orsa guidance manual, the analysis of an insurers group assessment of risk capital requirements and associated capital adequacy description should be accompanied by a description of the approach used in the analysis, including that approachs key methodologies, assumptions, and considerations. Key naic panel approves orsa, a group supervision requirement. The own risk and solvency assessment orsa a regulatory guidepost to the future. In particular, the updated guidance manual clarifies that orsa summary reportshould be based upon reporting of erm to the insurers board of directors and should contain the same basic elements of what is reported to the board of directors. The number of states participating has grown from 12 in 2012, 16 in 20 to 26 in the 2014 study. Naic orsa guidance manual to determine if additional information is needed. Risk management strategies and orsa are both a dedicated regulation by the naic from. The national association of insurance commissioners naic is the statebased standardsetting organization governed by the chief insurance regulators from the 50 states, the district of columbia and five u. Naic orsa and risk capital casualty actuarial society. Orsas are scheduled to be filed in 2015, and that means the groundwork may either be well underway or needs to get swiftly ramped up in 2014. This ss contains pra expectations of firms regarding their orsa, including the orsa report, the firms policy regarding its orsa and the associated processes. General guidance the orsa should be one element of an insurers erm.
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