EIOPA has published an assessment of the first supervisory experiences of how European (re)insurance companies have implemented the own risk and solvency assessment (ORSA) process under Solvency II. The key findings are as follows:
- The majority of (re)insurance undertakings have made good progress in implementing the ORSA process.
- There is a need for a greater involvement of the administrative, management or supervisory bodies.
- The scope of risk assessment is to be further expanded.
- Overreliance on the standard formula by undertakings.
- The quality of stress testing including reverse stress tests and scenarios used in the ORSA assessments is to be further improved.