At the heart of the prudential Solvency II directive, the own risk and solvency assessment (ORSA) is defined as a set of processes constituting a tool for decision-making and strategic analysis. It aims to assess, in a continuous and prospective way, the overall solvency needs related to the specific risk profile of the insurance company. Risk Management and own risk and solvency assessment is a similar regulation that has been enacted in the US by the NAIC.[1] Other jurisdictions are enacting similar regulations to comply with the Insurance Core Principle 16 enacted by the IAIS.[2]
{{cite web}}
: CS1 maint: archived copy as title (link)