Solvency regulation has entered a new phase in the insurance industry as in-depth, forward-looking insurer self-assessments replace reviews of past balance sheets in states where Own Risk and Solvency Assessment (ORSA) regulation has been adopted.
Executive Summary
Risk management experts from Hanover Stone Solutions outline six critical checkpoints for C-level insurance company executives to keep their enterprise risk management programs on track and aligned with overall business strategies.In the past, solvency standards were determined by regulators who evaluated the solvency needs of an insurer as an outside party. Now, through the implementation of ORSA, the insurer’s management team and board of directors will take a more proactive approach in explaining to regulators how their enterprise risk management (ERM) programs provide them with critical risk information to ascertain the actual risk position and capital needs of the organization.
