Many of Gibraltar's insurers, alone or with the aid of Risk Consultancies like KPMG, will be approaching the concluding phase of their Own Risk and Solvency Assessments (ORSAs).
Many of Gibraltar's insurers, alone or with the aid of Risk Consultancies like KPMG, will be approaching the concluding phase of their Own Risk and Solvency Assessments (ORSAs). OSRA is a new process and reporting obligation under recently enacted Solvency II regulation. It raises the expectations of executive and non-executive directors' strategic knowledge and their demonstrable participation in risk and capital planning.
ORSA requirements oblige each insurance company to;
Gibraltar, like most EU member states, have expected firms to have performed dry-run ORSAs over the last couple of years in preparation. The GFSC's recently published feedback on 2015's efforts was candid and pragmatic, highlighting areas where most, if not all firms were considered to be behind the curve, and proposing suitable remedial action.
This included topics such as:
It is stressed that insurer’s ORSA processes will feed into the GFSC’s supervisory approach from now on, with the ORSA Report as an invaluable source of material for enabling the regulator to deliver on its statutory objectives. Therefore, the emphasis on demonstrating and evidencing executive and non-executive engagement, rather than simply producing and filing a report for compliance purposes, cannot be overstated.
GFSC expectations of this year’s ORSA efforts have therefore been signposted – can the industry meet, or even beat the bar?
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