Own Risk and Solvency Assessment Supports and Strengthens ERM Capabilities: PCI-RIMS Report
NEW YORK (January 9, 2017) - The complexity and speed of change of emerging risk exposures are placing greater attention on the effectiveness of enterprise risk management strategies across all industry sectors, according to the newly released report titled, “Communicating the Value of Enterprise Risk Management - The Benefits of Developing an Own Risk and Solvency Assessment Report.”
The report, developed by members of a joint project team representing the ERM Committees of the Property Casualty Insurers Association of America (PCI) and RIMS, the risk management society®, explores the risk professional’s perspective on the objectives and benefits of completing an Own Risk and Solvency Assessment (ORSA) and its potential value to the overall business.
“Risk management is cyclical in that practitioners must continuously review their programs and their internal and external environments to ensure effectiveness, sustainability and growth,” said RIMS CEO Mary Roth. “The committees have done a remarkable job exploring the Own Risk and Solvency Assessment, its forward-looking, ongoing nature, as well as its flexibility that maximizes its value to risk professionals in a broad range of industries.”
The PCI-RIMS contributing authors utilized their recent experience in response to a new insurance regulatory reporting requirements to describe how insurers have benefitted from completing this ORSA and how the corresponding ORSA Summary Report can be used by companies in any industry as an effective method for communicating the value of ERM.
Intended for risk professionals from industry sectors beyond just insurance, the report presents a balanced introduction and detail of the insurer’s experience along with appropriate insight into the benefits of the ORSA process and outcomes to the organization.
The paper is available for download in RIMS Risk Knowledge library.
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The Property Casualty Insurers Association of America (PCI) is composed of nearly 1,000 member companies, representing the broadest cross section of insurers of any national trade association. PCI members write $202 billion in annual premium, 35 percent of the nation's property casualty insurance. Member companies write 42 percent of the U.S. automobile insurance market, 27 percent of the homeowners market, 33 percent of the commercial property and liability market and 34 percent of the private workers compensation market.