Own Risk and Solvency Assessment (ORSA)

Insurance companies are legally obliged to be organised in a way that enables them to identify, limit and monitor their key risks. To this end, they perform a forward-looking self-assessment of their risk situation and capital requirements on at least an annual basis. This self-assessment enables the insurer to develop a comprehensive overview of its risk and capital situation including the interrelationships between risks and capital.

These requirements apply to all Swiss direct insurance and reinsurance companies, branches of foreign insurance companies and insurance groups and conglomerates (insurance groups) supervised by FINMA.

FINMA reviews compliance with these supervisory requirements through an annual systematic process.