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| LIKE THE PANTHEON, YOUR COMPANY NEEDS SOLID PILLARS. |
| All our answers to your questions to help you understand and implement ORSA, the heart of Pillar 2. |
1.
What precisely is ORSA?
2.
What is the relationship between the governance and the actuarial functions, as required by Pillar II?
3.
What are the differences between ORSA and the SCR/MCR calculation?
4.
Why should I comply with an assessment in which the solvency capital requirement is not necessary?
1.
| What precisely is ORSA? |
It is a projection of the financial and underwritten risks over a 3-5 year period, in line with the requirements of Pillar I of Solvency 2 with an allowance for any risks not potentially identified at the Pillar I level.
2.
| What is the relationship between the governance and the actuarial functions, as required by Pillar II? |
The actuarial function ORSA is the starting point for drawing up a governance report. EIOPA puts ORSA at the heart of the strategic, operational and governance functioning of insurance and reinsurance companies, thanks to its forward-looking vision.
3.
| What are the differences between ORSA and the SCR/MCR calculation? |
The SCR is the capital required to cover the risks over a one year term, whereas ORSA estimates the potential capital requirementd to cover risks over 3 to 5 years.
4.
| Why should I comply with an assessment in which the solvency capital requirement is not necessary? |
ORSA is the key element of good governance because it clarifies future risks. It can identify and map out the future of your company according to one central scenario and various stress test scenarios.

