How to conduct the ORSA - Requirements, EIOPA responses and industry views
At the heart of Solvency II is the need for closely integrated risk and capital management. While the ORSA has been seen as a key mechanism through which to achieve this, it is not prominent in the draft level 2 implementing measures and level 3 guidelines were not released for a long period after the initial CEIOPS issues paper in 2008. ORSA has therefore been seen as an important yet enigmatic area of Solvency II.
As well as addressing the key components, requirements and market view of the ORSA, this paper summarises the modifications to CP-11/008 that have been adopted by EIOPA in their final guidance.