Enterprise Risk Management

Translations of certain IAA papers have been made by local member associations or members. The IAA has neither reviewed nor endorsed them. However, we are providing them on our website as a service to members.

Actuarial Aspects of ERM for Insurance Companies Actuarial Aspects of ERM for Insurance Companies - The purpose of this paper is to provide assistance to actuaries or other practitioners in relation to Enterprise Risk Management (ERM). The objective is to assist practitioners, and to help to achieve greater consistency in relation to knowledge and awareness of various topics. This paper was produced by the Enterprise and Financial Risk Committee of the IAA.
Deriving Value from ORSA

Deriving Value from ORSA - Board Perspective - An Executive Board has a significant role to play in overseeing management's assessments of risk and solvency and in challenging ORSA results as they are communicated by management. The purpose of this paper is to provide members of the Board insight into the value of the ORSA process, regardless of the specific implementation and requirements for ORSA in a given regulatory environment and to establish Board expectations for the information that senior management should routinely communicate to them.

Measurement of Liabilities for Insurance Contracts: Current Estimates and Risk Margins — The ad hoc Risk Margin Working Group (RMWG) of the International Actuarial Association (IAA) has conducted research into the measurement of liabilities for insurance contracts that has resulted in this paper. The issues addressed are those that will help determine future practice for measuring liabilities for insurance contracts for both regulatory and general purpose financial reporting. It focuses on current estimates and risk margins, which the RMWG believes to be an appropriate basis for the measurement of liabilities for insurance contracts. During the course of this research the RMWG has sought and incorporated input from various stakeholders in the measurement of these liabilities. (Online Order Form)

Note on Enterprise Risk Management for Pensions  This paper provides an important summary of the pension industry's perspective on Enterprise Risk Management for capital and solvency purposes in the insurance industry, noting that:

  • in pensions the sponsoring company is generally not an insurance company and therefore pension issues should, in the sponsoring employer, be dealt with in the general framework of ERM, not just in a framework adapted to insurers; and
  • while pensions have much in common with insurance contracts, there are quite a few differences, meaning that the framework adapted to insurers is not directly applicable to pension funds.