[Infographic] Top 10 ORSA process pitfalls
We're in the inaugural year of the ORSA process and its accompanying Summary Report.
As a new regulatory requirement, ORSA demands substantial investment of resources and time from insurance companies. ORSA not only presents a handful of challenges, but also an opportunity. We've outlined the top 10 pitfalls in the ORSA process with Jeff Fitch, President of Fitch Consulting Incorporated and former Chief Risk Officer of Aviva USA.
Examine your current ORSA process for these pitfalls.
- Making the ORSA Summary Report overly complex
If your stakeholders aren't concerned with it, it should not be included.
- Being too broad or too vague in the ORSA Summary Report
Don't block your path to improvement by glossing over the details.
- Using a "check-the-box"approach
Don't get distracted by best practices and forget the content of your report.
- Starting at the eleventh hour
The stability of your business deserves more than a last-minute effort.
- Separating ORSA from other business processes
ORSA looks at all aspects of a business and needs to be integrated.
- Manual and time-consuming reporting processes
Wrangling unstructured data opens the door for inconsistencies and errors.
- Stopping when statuses are met
Statutes are not one size fits all and may not be enough to avoid regulatory action.
- Developing your ORSA report in a vacuum
Collaborate with stakeholders who actually handle the data you need.
- Putting your ORSA in a silo
The risk of insufficient capital can come from anywhere, making a shortsighted approach dangerous.
- Only reporting past results
Historical data should only serve to help make educated predictions about the future.
Get your ORSA Summary Report started on the right foot, and check out this 10 common pitfalls in the ORSA process infographic.