ORSA Working Group Established

ORSA Working Group Established

The International Actuarial Association (IAA) is pleased to announce the creation of the ORSA Working Group under the leadership of Co-Chairs Henk van Broekhoven of The Netherlands and Lars Pralle of Germany. The Working Group’s membership comprises actuaries and other professionals with the relevant expertise and interest.

Own Risk Solvency Assessment (ORSA), is a tool used to assess the adequacy of the insurer’s risk management and solvency position. The Working Group aims to advance the actuarial view in this area and to promote the competencies of actuaries to perform the ORSA.

In carrying out its mandate, the Working Group will monitor developments with regard to the quantitative and qualitative elements of the ORSA in jurisdictions adopting ORSA under IAIS Insurance Core Principle 16 (for example in the United States and in Europe under Solvency II). The Working Group will also contribute to international discussions relative to the ORSA, support actuarial associations in discussions with their regulators, where appropriate, and encourage actuaries to be involved in ORSA.

One of the main objectives is to help prepare the actuarial profession to fulfill a major role in the implementation of ORSA by insurers, which may involve the enhancement of training and education programs for actuaries worldwide. In this respect, the Working Group will serve as a forum for exchanging views and developing positions to ensure that best practices emerge more quickly and are shared across the profession.

“Actuaries have a great deal to contribute to the development and advancement of this new regulatory thrust into Enterprise Risk Management. I am pleased that our initiative to create the ORSA Working Group will provide a focal point for international involvement in future developments, both for the actuarial profession and for the regulatory community.”
– Desmond Smith, President of the IAA

To learn more about the work of the IAA on this topic, or to become involved in its work, please contact the Co-Chairs of the ORSA Working Group, care of the IAA Secretariat.