Solvency II - ORSA - MARisk


Solvency II - ORSA - MaRisk:
Elements of a company-wide Risk and Capital Management (ERM Framework)

Following the introduction of the minimum supervisory requirements for Risk Management (MaRisk VA) in January 2009, German (re)insurers should have meanwhile intensively dealt with Pillar II of Solvency II. The projects for the implementation of Solvency II are well under way with most (re)insurers, respectively, are already in the introductory phase. The foundation for the implementation of ORSA (Own Risk and Solvency Assessments) needs already to be laid now. The framework of MaRisk, Pillar II Solvency II and ORSA is in its entirety based on the same principles as a methodical company-wide Risk and Control Management System: namely an efficient, quantitative and qualitative Management of the Capital and Risks with the aim to establish corporate value but in compliance with the regulatory requirements.

Very often (re)insurers place too much emphasis on the compliance of part-regulations rather than establishing a comprehensive, entrepreneurial Risk, Control and Capital Management, which, apart from fulfilling the primary business objectives, also meets all the regulatory requirements. Focusing on part-regulations can lead to pointless duplicated work, inconsistency as well as to an undefined line of responsibility without supporting the core business effectively.

Our longstanding experience with the implementation of a company-wide Risk Management and Control Systems, our quantitative and qualitative Risk Management models and tools support (re)insurers with integrating their existing Risk, Control and Capital Management elements into a company-wide reliable framework. Thus, synergies are utilized to cover all exposures of compliance with the regulatory requirements avoiding unnecessary duplicated work. Numerous projects have shown that with a clear ERM-concept, previous established procedures can be complemented and loopholes along the regulatory alignment can be efficiently identified and covered. Thus keeping an eye foremost on the business objectives rather than on the regulatory requirements.
For additional information please refer to the attached presentation
or contact André Baumli, Phone +41 41 725 32 24