ORSA = Own Risk and Solvency Assessment

At the heart of the prudential SII directive, the ORSA is defined as a set of processes constituting a tool for decision-making and strategic analysis. It aims to assess, in a continuous and prospective way, the overall solvency needs related to the specific risk profile of the insurance company.

It is an internal process undertaken by an insurer to assess the adequacy of its risk management and current and prospective solvency positions under normal and severe stress scenarios.