Menu

Reinsurance News

Re/insurers’ ORSA implementation progressing, but improvements needed: EIOPA

26th June 2017 - Author: Luke Gallin

Most European insurers and reinsurers have made solid progress regarding the implementation of the Own Risk and Solvency Assessment (ORSA), but the European Insurance and Occupational Pensions Authority (EIOPA) has called for further improvements.

EIOPA logoA supervisory statement released by the EIOPA explores the implementation of ORSA under Europe’s Solvency II framework, and highlights areas for improvement despite good progress being made by the majority of re/insurers.

Under Article 45 of the Solvency II Directive, every re/insurance undertaking throughout Europe must complete its own ORSA.

“EIOPA welcomes the progress of (re)insurance companies in the implementation of the ORSA process. At the same time EIOPA calls for further improvements, which are needed for a better integration of this essential risk management tool into the companies’ business strategy. This forward-looking own risk and solvency assessment is crucial to protect European consumers and ensure financial stability in Europe,” said Gabriel Bernardino, Chairman of the EIOPA.

Areas for improvement suggested by the EIOPA includes the ORSA process being inclusive of the involvement of key functions, the greater involvement of the administrative, management or supervisory bodies (AMSB) and embedding ORSA results within strategic management decisions, risk assessment for all material risks, the standard formula and ORSA, and also the quality of stress testing.

RMS

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
Argentina relaxes regulations to open market to global reinsurers

The Argentinean Insurance Superintendent (SSN) recently issued a resolution to open up its regulatory reinsurance framework to the global sector by allowing...

Close