[Infographic] Top 10 ORSA process pitfalls

[Infographic] Top 10 ORSA process pitfalls
January 16, 2015

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.

  1. Making the ORSA Summary Report overly complex
    If your stakeholders aren't concerned with it, it should not be included.

  2. Being too broad or too vague in the ORSA Summary Report
    Don't block your path to improvement by glossing over the details.

  3. Using a "check-the-box"approach
    Don't get distracted by best practices and forget the content of your report.

  4. Starting at the eleventh hour
    The stability of your business deserves more than a last-minute effort.

  5. Separating ORSA from other business processes
    ORSA looks at all aspects of a business and needs to be integrated.

  6. Manual and time-consuming reporting processes
    Wrangling unstructured data opens the door for inconsistencies and errors.

  7. Stopping when statuses are met
    Statutes are not one size fits all and may not be enough to avoid regulatory action.

  8. Developing your ORSA report in a vacuum
    Collaborate with stakeholders who actually handle the data you need.

  9. Putting your ORSA in a silo
    The risk of insufficient capital can come from anywhere, making a shortsighted approach dangerous.

  10. 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.

Mike Sellberg

About the author

Mike Sellberg is Executive Vice President and Chief Product Officer at Workiva. He is the former EVP and CTO at iMed Studios and the former Divisional General Manager at Engineering Animation, Inc.