Looking ahead is no longer a mere nice-to-have, but a must-have to successfully navigate the future of insurance.
The European rules for insurance risk management are out of date; they could not weather the financial crisis. Solvency II (SII), the newest EU directive, aims to improve insurer’s risk assessment. Since 2016, insurance firms are obliged to assess their solvency needs through their Own Risk and Solvency Assessment (ORSA). In this, scenario planning plays an important role.
Some critics call it the umpteenth regulatory nuisance. However, De Ruijter Strategy knows from years of experience with scenario planning, as well as working with the Dutch Association of Insurers and Nyenrode Business Universiteit, that the ORSA provides a unique opportunity for growth. Provided the ORSA is integrated as a management tool into the firm’s strategic decision-making processes. Insurers must seize ORSA as an opportunity to make scenario-based, future-oriented thinking the basis of the strategy for success of its firm. The use of scenarios could drastically improve the future of insurance.
Read the complete article on navigating the future with ORSA below.
