The NAIC demonstrated visionary leadership when adopting principles based on ORSA guidelines that allow U.S. insurers to develop ORSA Summary Reports that can recognize the unique aspects of their business. Many insurance companies have some form of ERM plan in place, but many of those plans are perfunctory, outdated, incomplete or unwieldy, thus regulators will be challenged to assess the quality of an ORSA. Further, the NAIC criteria will evolve and regulators will have to adjust, accordingly.

 

For regulators, HSS can assist the states in establishing an ORSA review process:

• Introduction of ERM to the state DOI staff

• Introduction of ORSA to the staff

• Assist in understanding the quality and content on ORSA reports

• Assist in identifying red flags in ORSA reports

• Assist in tying ORSA reports to the standard review process

• Serve as an outside advisor

• Conduct staff training & mentoring

• Provide an HSS library of ERM “best practices" material

• Keep the state current on ERM/ORSA trends