An orsa must be conducted and an orsa summary report must be prepared consistent with the naics orsa guidance manual. As with the naic model act, texas orsa imposes three principal. Naic own risk and solvency assessment orsa guidance manual, national association of insurance commissioners, 2011. Dec 01, 2012 the naic fall 2012 national meeting took place on november 28 30, in washington, d. The own risk and solvency assessment orsa shall be conducted in accordance with the standards and requirements set forth in the national association of insurance commissioners orsa guidance manual, 2014 2017 edition. The orsa guidance manual would require an insurer to produce, at the legal entity level, an orsa document comprised of three major sections. New solvency regimes promote value creation for insurers. Enterprise risk report and orsa summary report department of. Naic announces adoption of risk management and own risk. Own risk and solvency assessment orsa news and analysis.
May 20, 20 the manual states that it is intended to provide guidance for completing each section of the orsa summary report, which should therefore make the job a doodle. Jul 14, 2014 this edition of the naic own risk and solvency assessment orsa guidance manual has been revised from the previous edition. Forms and instructions for required filings in michigan. Naic orsa and risk capital casualty actuarial society. Several trade associations and companies commented on the. January 1, 2015 currently adopted by 20 states a new regulatory requirement intended to. The orsa guidance manual, which was adopted by the naic executive ex committee and plenary in march 2012, provides information for insurers on performing its orsa and documenting risk policies and procedures. The holder of this manual may enter a passwordprotected naic website at. Department prepared analysis of orsa summary report analysis with other regulators with naic or third party consultant with other regulators with naic or third party. To foster an effective level of erm for all insurers, through which each insurer identifies, assesses, monitors, prioritizes and reports on its material and relevant risks identified by the insurer, using techniques appropriate to. Orsa summary report, including any supplemental materials or followup questions provided orsa 2. Texas enacts own risk solvency assessment orsa requirements. Top 10 hot topics for the upcoming naic conference in nola. The orsa guidance manual includes information such as the goals of the orsa, detailed descriptions of the three sections of an orsa report, and orsa exemption criteria 2011 pwc 9 orsa guidance manual adopted by naic executive committee in march 2012 draft orsa model act released for public comment in april 2012.
Some interesting bits jump out, not necessarily in contrast to reportedobservable differences from the eu approach, more the fact that they are specified in the manual rather than. Mar 09, 2012 the national association of insurance commissioners the naic held its 2012 spring national meeting from march 3 to 6, 2012 in new orleans, louisiana. Texas orsa filings will be effected in accordance with the naic s published orsa guidance manual as it is updated from time to time. Own risk and solvency assessment national association of. Sep 18, 2012 the orsa guidance manual, published by the naic in november 2011, provides insurers with assistance on how to conduct a company orsa. 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. As adopted by financial condition e committee september 6, 2012. Risk management and own risk and solvency assessment model act, national association of insurance commissioners, 2012. Smi roadmap dec 2012 final national association of. Overall, the solvency ii requirements for orsa will probably be more prescriptive than in the u.
The report went on to say that of the 22 submissions in 20, regulators agreed that only three reports could greatly benefit from material improvements. Increased scheduling of supervisory colleges and implementation of supervisory colleges tracking documentation. Apr 05, 2012 the requirements of the orsa model act would apply to all u. Naic own risk and solvency assessment orsa national. 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. The term orsa guidance manual shall mean the current version of the own risk and solvency assessment guidance manual developed and adopted by the national association of insurance commissioners naic and as amended from time to time. The naic releases draft orsa model act for public comment. In order to facilitate orsa implementation, the naic created the guidance.
As with the naic model act, texas orsa is targeted at larger companies and groups. Naic orsa guidance manual to determine if additional information is needed. January 31, 2012 own risk and solvency assessment american. The revisions to the orsa guidance manual are subject to adoption by the orsa subgroup. For example, the draft amended orsa guidance manual adds changes to synchronize guidance in the manual with the requirements set forth in the orsa model act. Extensive reporting guidelines in solvency ii interim measures will challenge insurers. Orsa information sharing best practices confidential information includes. Orsa subgroup comments to the naic on its december 2012 draft, guidance manual for the own risk and solvency assessment, including information on actuaries involved in enterprise risk management. Contact persons name, e mail address and phone number. Under the model the commissioner can request an annual filing of orsa summary reports. The following summarizes the most significant changes since the march 20 edition. As originally drafted and adopted in the spring of 2012, the orsa guidance manual provided guidance regarding the conduct, internal documentation and reporting on the orsa of the insurer andor the insurance group of which the insurer is a member. In august, the naic released for commentary a draft guidance manual called.
Relevant investment accounting items are examined below, including updates on mandatory securities, the recalibration project, the derivative reporting subgroup, and more. Enterprise risk report and orsa summary report department. The following summarizes the three key features of the orsa report. The naics model act version of orsa was adopted in 2012 and texas now joins to approximately 20. As stated in the naic orsa guidance manual guidance manual, the orsa has two primary goals.
To foster an effective level of erm at all insurers, through which each insurer identifies, assesses, monitors, prioritizes and reports on its material and relevant risks identified by the insurer, using techniques that are. To address this, the naic has a website dedicated to providing the holder of this manual with the latest information impacting financial examinations. Consider the key features of your erm and capital assessment program and the message. Comments on naic own risk and solvency assessment orsa guidance manual dear director huff and mr.
Antiinjunction act whether a taxation provision in the aca prevents a court challenge until it is in effect, in 201415. A change in the orsa guidance manual shall be effective on the january 1. Risk and solvency assessment orsa and enterprise risk. An orsa must be conducted and an orsa summary report must be prepared consistent with the naic s orsa guidance manual. A pilot exercise will run in 2012, from which the naic plans to issue public feedback on a nonames basis. Orsa own risk and solvency assessment naic model law adopted in september 2012 naic guidance manual revised march 20 effective date. 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. Comments received on draft orsa guidance manual and draft. Naic fall 2012 national meeting updates clear insights.
Regulatory bodies naic own risk solvency assessment orsa. The purpose of the orsa guidance manual is to provide guidance to insurers on how to conduct an orsa to assess the adequacy of their risk management and solvency positions. Aug 21, 2012 based on the experience the naic gained from the orsa pilot project in which insurers filed confidential draft orsa summary reports, the orsa guidance manual will be revised to require insurers. Ensuring readiness for the us own risk and solvency. Naic provides orsa guidance in new feedback to industry. In march 2012, the financial condition e subcommittee was instructed by the naic executive ex. Section 2 of the naic s orsa summary report is the insurers assessment of its risk exposures. The orsa is an insurers own process for assessing its risk profile and the capital required to support its business plans in normal and stressed environments on a forwardlooking basis. Orsa subgroup comments to the naic on its december 2012 draft, guidance manual for the own risk and solvency assessment, including information on. These revisions reflect changes made i in light of the 2012 orsa pilot project and ii in order to incorporate the final language of the orsa model act.
Naic own risk and solvency assessment orsa guidance manual, march 2014. Risk management and financial reporting council american. An insurer using this manual should refer to the laws adopted by the insurers state of domicile when determining its requirements for risk management, its own risk and solvency assessment orsa and for preparing its orsa summary report. Naic announces orsa model act comment period lexology. Echoing its eu counterparts, naic enacts guidelines for self.
Saenz, given the significance of model risk for many insurers, the american academy of actuaries1 erm committee would like to suggest the explicit recognition of this risk in the naic s own risk and solvency assessment guidance manual. This concept was also included in the naic s revised orsa guidance manual, which, like the pilot program feedback, was released by the naic on january 30, 2014. March 6, 2014 via courier and email new york department of. Jun 03, 2015 by statute, the orsa summary reports are not subject to public disclosure. Saenz, on behalf of the american academy of actuaries. Texas enacts own risk and solvency assessment orsa. All companies shal l file the naic annual and qu arterly statements and shall follow the 2020 naic annual statement instructions annual statement filing, the 2021 naic. Own risk and solvency assessment guidance manual developed and adopted by the national association of insurance commissioners naic and as amended from time to time.
Distressed companies in rbc action levels may also be required to produce an orsa at the regulators discretion. Naic in 2012, insurance companies meeting certain guidelines are. As noted in the orsa guidance manual, the orsa has two primary goals. Mar 12, 2012 like other naic actions in response to the financial crisis e. The orsa guidance manual, which was adopted by the naic executive ex. An overview of the requirements from a qualitative, quantitative and governance perspective was provided in the december edition of the financial reporter. Apr 10, 2012 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 naic s 2011. Society of actuaries financial and regulatory environment u.
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