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2015 Mock ORSA reports - KPMG South Africa assessment results The South African Insurance Industry Survey 2016 | 15

Lagging Developing Good Leading EXCELLENT FIRMS DON'T
BELIEVE IN EXCELLENCE -
Risk management system Where we expect the top insurers to be positioned ONLY IN CONSTANT
Link to business plan / strategy * IMPROVEMENT AND
Risk appetite and risk tolerance CONSTANT CHANGE.
Material risk assessment (qualitative
and quantitative) Tom Peters
Assessment of solvency (solvency
needs and capital projections)
Stress testing and scenario analysis
Use in decision making
Out-of-cycle ORSA*
Documentation
Group-wide coverage

Average rating of the South African industry for the first mock ORSA

The following rating scale is used:

Lagging Developing Good Leading
Compliance focus/led Moving toward value add Value add Leading edge sophistication

Benchmarking results In most areas the ORSAs are on average
DEVELOPING which is expected as the 2015 cycle
Overall, our view is that on average South African represents first or early iterations. There is still a
companies are LAGGING in the areas of: significant amount of work to be carried out by all
–– linking the ORSA to the business plan and strategy; firms. This is consistent with observations in other
–– using ORSA in decision-making; countries - UK and Canada - in early ORSA cycles. On
–– out-of-cycle ORSA; and average, material risk assessment is an area where
–– group-wide coverage. companies are moving from DEVELOPING to GOOD.