Regulatory Alerts2021-10-21
Added · Updated
Guidance Note on Licensed Insurers’ Own Solvency Assessment
Licensed insurers must perform an Own Risk and Solvency Assessment (ORSA) comprising an Own Solvency Capital Assessment (OSCA), risk management evaluation, and capital adequacy review, with specific exemptions for Category 6 licensees, dormant insurers, and certain low-MCR categories. The assessment must be submitted annually with the annual return, within six months of the assessment date upon request, and upon material business plan changes or new applications. Insurers are required to use appropriate forward-looking quantitative techniques, including stress testing and scenario analysis, to determine financial resources needed to manage business risks and meet future regulatory capital requirements over a planning horizon exceeding one year.