The Solvency II preparatory guidelines require undertakings to prepare a Forward Looking Assessments of Own Risk (FLAOR) based on the ORSA principles. While the FLAOR can be prepared on a “best efforts” basis, it is undoubtedly a useful first step towards full implementation of the ORSA. In this research report, we explore the progress that undertakings have made towards meeting the preparatory guidelines in a number of different European countries and outline the feedback provided by various European supervisory authorities. We also discuss the steps that can be taken to build upon what has been achieved during the preparatory phase in order to meet the full requirements of the ORSA from 2016 onwards.
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