Risk Solutions
Own Risk & Solvency Assessment (ORSA)
This note provides high-level recommendations for insurance companies when developing or enhancing their Stress and Scenario Testing (SST) framework.
EIOPA has recently issued a supervisory statement providing feedback on the ORSAs submitted in 2016.
The assessment of the appropriateness of the standard formula is a key part of the Own Risk and Solvency Assessment (ORSA) process under Solvency II.
This article provides a short overview of the structure of the Standard Formula, presents a suggested framework and worked examples, and discusses challenges and pitfalls to be considered.
