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Susan Hunt The South African Insurance Industry Survey 2016 | 11
Associate Director, ORSA requirements
Financial Risk Management
Tel: +27 71 686 4968 and global insights
Email: susan.hunt@kpmg.co.za
The Own Risk and Solvency Assessment (ORSA) is defined as “the entirety of the
Joana Abrahams processes and procedures employed to identify, assess, monitor, manage and report the
short and long term risks an insurance undertaking faces or may face and to determine
Manager, the own funds necessary to ensure that an insurer’s (and group’s) overall solvency needs
Financial Risk Management are met at all times and are sufficient to achieve its business strategy.” It is therefore an
Tel: +27 82 450 1344 internal process undertaken by an insurer (group) to assess the adequacy of its own risk
Email: joana.abrahams@kpmg.co.za management practices as well as current and prospective solvency positions. This needs
to be done under both normal and severe stress scenarios.
Megan Li
ORSA is a key component of Solvency “The structure of the report is, important, not least as a
Junior Consultant, Assessment and Management (SAM): means of ensuring that the analytical framework is clear.
Financial Risk Management a risk-based regulatory regime for the Good reports include a clear summary; highlight the main
Tel: +27 82 389 3186 prudential regulation of long-term messages and issues; are not too long; and clearly sign-
Email: megan.li@kpmg.co.za and short-term insurers and reinsurers in post supporting documentation.”
South Africa. By 31 August 2015, Letter from the Prudential Regulatory Authority (the UK
South African (re)insurance companies Regulator) to the industry dated June 2015
were required to submit a 2015 mock ORSA
report to the Financial Services Board (FSB).
Insurance companies (groups) will again be
required to submit an ORSA report by latest
30 September 2016 (or 30 November 2016,
if approval is granted).
