Executives of property/casualty insurers are getting comfortable with the idea that they have to file Enterprise Risk Reports and Own Risk and Solvency Assessments (ORSA) with U.S. insurance regulators in the next two years. But a natural question they’re asking is what happens next.
Executive SummaryAt an industry forum addressing the state of insurance regulation recently, industry executives and regulators described requirements for Enterprise Risk Reports and Own Risk and Solvency Assessments, and also debated related questions about confidentiality and potential regulatory overreach into carrier management arenas outside of their areas of expertise.
What will regulators do with all those reports? How will they sort through them, and how will they use all the new information that’s being provided?
Carrier executives Patricia Henry, executive vice president and deputy general counsel for ACE Group, and David Schonbrun, head of legal for Hiscox USA, discussed the questions at the Insurance Regulatory Symposium held at St. Joseph’s University. During a session titled “The Current State of Regulation,” they talked about the level of confidentiality required by regulators reviewing Enterprise Risk Reports, the potential for regulatory overreach in evaluating ORSAs, and the need to keep ORSA rules nonprescriptive.