US insurers and regulators misaligned on Orsa

As the third pilot for the US Orsa takes place, some in the industry complain that regulators are moving away from a principle-based approach

As the third US Own Risk and Solvency Assessment (Orsa) pilot project enters its critical phase, insurers and consultants are warning that regulators and insurers might not be following the same playbook when it comes to designing an appropriate framework to evaluate and report firms' capital needs.

The US Orsa is intended to be a principle-based process, allowing insurers to conduct an assessment "appropriate to the nature, scale and complexity" of the firm, in the words of the model law. But a