Introduction: Starting the Solvency II Journey
Solvency II: The journey so far
Internal Models and Solvency II
Review of the Capital Adequacy Framework in Singapore
Insurance Liabilities Under IFRS 4 Phase II and Solvency II: Almost the Same Thing?
Solvency II and Mutual Insurance Companies
The Journey Towards an Approved Internal Model
The Road to Solvency II for a Life Insurance Company
Managing Model Risk
Solvency II and Reinsurance
ORSA: A Forward-looking Approach to Risk and Capital Management
Risk Governance: A Framework to Support Better Decision-making and a Journey Towards Continuous Improvement
Operational Risk and Solvency II: A Practitioner Perspective
Reporting Challenges under Solvency II: The Allianz Experience
The Audit of Solvency II Information
The Holistic Balance Sheet: A Different European Approach for Pension Funds?
Capital for Operational Risk: Some Fundamental Flaws
Reputational Risk: Success is Trust-dependent
The own risk and solvency assessment (ORSA) is the broadest, and arguably the most principles-based, of all the components of Solvency II. Regulators and insurers alike have expressed interest and appreciation for this approach, which has led to ORSA being integrated into the International Association of Insurance Supervisors (IAIS) set of core principles. As a direct consequence, ORSA has been adopted by regulators throughout the world, including – but not limited to – the US, Canada, South Africa, Japan and Singapore.
In my role as head of group-wide ORSA implementation for Swiss Re, I have been charged with the task of rolling out the concepts that we developed in the Solvency II framework to nearly all regulatory jurisdictions where Swiss Re operates. This experience has broadened my view of ORSA, and has contributed strongly to the perspective that is presented in this chapter. It will seek to paint a brief but clear picture of ORSA’s potential implications and benefits, and provide a concrete impression of the aspects of ORSA that are likely to prove most compelling and promising from an internal perspective.
Where possible, I treat the topic generally, so that the points a