International ERM Glossary

The International ERM Glossary is intended to provide users with a set of definitions that are in common usage around the world by actuaries, regulators and members of the insurance industry. The purpose in developing the glossary is to help provide a common understanding of the terms currently in use, as definitions and meanings have varied over time, and among practitioners. It can also be used as a training and educational tool for regulators.

The glossary can be consulted per letter, organization or grouping.

DISCLAIMER: The content of the International ERM Glossary has been compiled by the Joint ORSA Subcommittee of the Insurance Regulation Committee and the Enterprise and Financial Risk Committee of the IAA. This information has been collated and presented for educational and informational purposes to the members of the IAA and interested parties. The IAA assumes no responsibility for the accuracy, completeness, currency, reliability of the information in the International ERM Glossary or access to any information contained on any of the sources cited in the Glossary. The IAA, its employees and officers shall not be liable for any loss or damage, direct or indirect, which may arise or occur as a result of the use of or reliance upon any of the material in the International ERM Glossary.

Export

Glossary
TermGroupingOrganization or Jurisdiction Defining TermSource of DefinitionDefinition
Own Risk and Solvency Assessment (ORSA)GeneralIAISIAIS ICP 16The assessment of whether an insurer's risk management and solvency position is currently adequate and is likely to remain so in the future.O
Own Risk and Solvency Assessment (ORSA)GeneralInternational Actuarial AssociationIAA - Acturial Aspects of ERM for Insurance CompaniesA company's assessment of its risks and of the solvency needs associated with those risksO
Own Risk and Solvency Assessment (ORSA)GeneralThe European Economic AreaSolvency IIThat assessment shall include at least the following:(a) the overall solvency needs taking into account the specific risk profile, approved risk tolerance limits and the business strategy of the undertaking, (b) the compliance, on a continuous basis, with the capital requirements, (c) the significance with which the risk profile of the undertaking concerned deviates from the assumptions underlying the Solvency Capital Requirement, calculated with the standard formula or with its partial or full internal model. (Solvency II Directive art. 45.1, text adjusted)O
Own Risk and Solvency Assessment (ORSA)GeneralUnited StatesNAIC ORSA MANUALA component of an insurer's enterprise risk management (ERM) framework, is a confidential internal assessment appropriate to the nature, scale and complexity of an insurer conducted by that insurer of the material and relevant risks identified by the insurer assuciated with an insurer's current business plan and the sufficiency of capital resources to support those risks.O