Risk Management ORSA Compliance
Insurance providers, since 2015, are required by the National Associate of Insurance Commissioners (NAIC) to submit an annual Own Risk & Solvency Assessment (ORSA) summary report to their state commissioner that details the insurer’s risk management activities. ORSA risk management requires transparency throughout departments, as well as strong governance; in order to present an accurate picture of their risk management initiatives, insurance providers must maintain a system that easily allows information collection from various departments. Senior management must have an easy way to hold different parties accountable for certain responsibilities. This ensures both effective reporting and ORSA compliance itself.
Risk managers at these organizations know their company, by virtue of operating in the insurance marketplace, is fundamentally practicing risk management. Even so, when they’re asked to aggregate that information to demonstrate ORSA compliance, risk managers can be left stumbling. They may not know who to engage, how to quickly and easily collect information, and the best way to present it.
LogicManager’s enterprise risk management platform provides a repository for all information related to ORSA compliance. Risk assessment and report templates are designed specifically to provide the data required by regulators and senior management concerned with ORSA requirements.
The primary goal of ORSA is to:
- Foster an effective level of ERM for all insurers
- Establish a framework for communicating risk
- Provide methodology to insurers to demonstrate the maturity and oversight of business operations
All three of these goals contribute to the NAIC’s stipulation that insurers with appropriately developed ERM frameworks “may not require the same scope of depth of review” as organizations with poorly defined processes.”