IFoA Middle East Conference 2024: Solvency II: a useful background to risk-based capital and ORSA process

Risk-basked capital and own risk and solvency assessment (ORSA) are matters of current interest in the Middle East with regional implementations underway. Some overlaps exist with the requirements of the EU’s solvency regime for insurers and reinsurers (Solvency II), which has been in effect since 2016.

This presentation provides a theoretical background to Solvency II and highlights some practical considerations in relation to its application by actuaries.

It covers the aims and pillars of the regulation (quantitative requirements, qualitative requirements, and reporting and disclosure), and how the pillars interact.

The presentation is tailored for a wide audience and is:

a refresher for actuaries who work in areas other than risk-based capital

an essentials guide for non-actuarial senior executives in insurance companies

a technically accessible introduction for actuarial students

By the end of the presentation the speaker aims for the audience to have an understanding of the purpose, structure, and outputs of each pillar of Solvency II (for example solvency capital requirements, ORSA, and public and private reporting).

Yasmeen Husain