ORSA process

At Nordisk Aktuarservice, we help insurance companies across Denmark and Scandinavia manage and enhance their Own Risk and Solvency Assessment (ORSA) process. We combine deep actuarial expertise with hands-on industry experience, enabling organisations not only to meet regulatory requirements but also to gain a thorough understanding of their risk profile.

Our actuaries have extensive knowledge of the Solvency II framework and continuously monitor developments in regulation, supervisory expectations, and industry best practices. This ensures that your organisation benefits from effective methodologies, robust processes, and ongoing regulatory compliance.

ORSA reporting

Under the Solvency II Directive, all insurance companies are required to conduct an ORSA annually and report the results to the relevant Financial Supervisory Authority (FSA). The purpose of the assessment is to ensure that the Board of Directors actively evaluates the company's future solvency needs and identifies, assesses and, where appropriate, mitigates risks that may affect its solvency position.

According to the European Commission, the ORSA report should include:

  • The qualitative and quantitative results of the own risk and solvency assessment, together with the conclusions drawn by the insurance or reinsurance undertaking
  • The methodologies and key assumptions used in the assessment
  • Information on the company's overall solvency needs, including a comparison between solvency needs, regulatory capital requirements, and available capital resources
  • Qualitative information and, where material deviations exist, a quantification of the extent to which identifiable risks are not reflected in the Solvency Capital Requirement calculation

ORSA is more than compliance

The ORSA process goes beyond regulatory compliance. It provides the Board and senior management with a comprehensive understanding of the company's risk profile and future capital requirements, enabling them to:

  • Prepare for adverse events and stress scenarios
  • Optimise capital allocation and risk management practices
  • Support strategic decision-making with a robust quantitative foundation