ORSA and Internal Model Independent Reviews

The insurance industry has undertaken a significant effort to deliver a more transparent business model where decision making, risk and capital are visibly linked. The Own Risk Solvency Assessment (ORSA) framework and report represent a key enhancement aligning initial business assumptions, business performance and future strategy to support a wide range of decision makers and in particular, the board of insurance companies. The business contribution of the ORSA is intrinsically linked to the effectiveness of the business capability to manage risk through its internal model and support effective decision making.

Stakeholder assurance about the adequacy of these frameworks, how they can be refined and the relevant gaps to operate effectively in a Solvency II environment can lead to more effective frameworks and competitive advantages.

Our experience in developing and challenging ORSA frameworks and reports, as well as Internal Models, including the capital models, in a wide range of clients provides us with an insightful understanding across the market and a calibrated view of what is proportionate and required for businesses.