If U.S. regulators graded insurers on their ORSA reports, the report cards might say “incomplete” or “needs improvement,” a representative of the National Association of Insurance Commissioners suggested earlier this month.
Executive Summary
Giving a heads-up to carrier risk professionals at an industry conference earlier this month, the NAIC's ERM Advisor reported that ORSA filings she has reviewed to date are short on revealing business strategies, stress testing of all key risks and prospective strategy positions, among other things.While Elisabetta Russo, ERM Advisor, Financial Regulatory Services for the NAIC, didn’t use those exact words when she spoke at the Ultimate Risk Solutions Annual User Group Forum in New York on May 11, she did say that with 70 ORSA reports already reviewed from a pile of 200 in the hands of U.S. regulators, some key elements are lacking in many of them. Chief among the missing items are a description of carrier business strategies in the executive summary and a prospective risk analysis in the body of the report.
