2016 ORSA Due Soon, Board of Directors’ Responsibility

2016 ORSA Due Soon, Board of Directors’ Responsibility

ORSA - Boards Responsibility

In our work with insurance companies we have found that there are two types of directors on the Board; the first type are terrified about their responsibilities that fall under ORSA; and the second type are the directors not aware that they should be terrified about their ORSA responsibilities!

In line with the Solvency II regulation the ownership of an insurance company’s ORSA sits with the Board, or AMSB if we are to use EIOPA’s (European Insurance and Occupational Pensions Authority) acronym which stands for the administrative, management or supervisory body.

As a non-executive director having this responsibility may be particularly daunting, as they are not involved in the day-to-day running of the business. With regards to the regulation they may not fully aware of the sixty plus ORSA requirements. Further, their expertise may be in areas that are only briefly incorporated in the ORSA.

In the UK one of the PRA’s findings from their 2nd and 3rd round of ORSA reviews was:

“Lack of evidence of embedding and buy in from senior management board”

If you are a board director of an insurance company, in your 2016 ORSA the first under Solvency II regulation, make sure you are aware of what is required from you.

Get some help with an ORSA 2016 Health Check

For more information and if you would like to talk to a Risk Management Advisor please give us a call or message us.

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