Regulatory Alerts2013-04-02
Added · Updated
Notice 126 Enterprise Risk Management for Insurers
This Notice establishes mandatory requirements and non-mandatory standards for Enterprise Risk Management (ERM) for licensed insurers, excluding captive and marine mutual insurers, requiring them to establish an ERM framework for identifying, quantifying, and managing all material risks, including group risk, and to update senior management quarterly and the board annually on risk profiles. Insurers must also have a risk management policy, a risk tolerance statement, and a responsive ERM framework that incorporates new information quarterly. Additionally, it mandates an annual Own Risk and Solvency Assessment (ORSA) covering all material risks, financial resources, and liquidity risk management processes, including maintaining a portfolio of unencumbered liquid assets and a contingency funding plan. Deviations from the guidelines may lead to additional supervisory requirements by the Authority.
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