Embracing Solvency II - The Own Risk And Solvency Assessment

One of the key elements of the new Solvency II regime is the Own Risk and Solvency Assessment ("ORSA"). The ORSA relates to the uncertainties associated with delivering an undertaking's commercial objectives and ensuring that those uncertainties are practically understood and managed with appropriate resources, so the risk profile of the undertaking concerned remains within the risk parameters set by the Board of Directors.

The ORSA is a key cornerstone of the risk management system under Solvency II.

Since the introduction of Solvency II in January 2016, Irish (re)insurance undertakings have used the ORSA as an opportunity to gain a better understanding of their particular risk profiles and capital needs with a view to maximising their competitive edge in the marketplace. From a regulatory perspective, the Central Bank of Ireland (the "CBI") has also pointed to the ORSA as being an invaluable source of information to help (re)insurance firms to make sound