The NAIC's Solvency Modernization Initiative (SMI), including the preliminary adoption of the US Own Risk & Solvency Assessment (ORSA), will present insurers with a number of new regulatory requirements. For insurers with group operations in Europe, Solvency II is also driving change, and evolving Federal and macro-prudential supervisory requirements also will affect many insurers. These may be challenging for insurers that have not implemented effective Enterprise Risk Management (ERM) and risk reporting frameworks.
Forward thinking insurers can use these new regulatory requirements as a catalyst for change within their business, to drive improved financial performance, and more effective risk and capital management. In turn, this can help lead to potential improvements in both credit and associated ERM ratings.
PwC has extensive experience with NAIC, statutory, and Federal regulatory matters, and regularly helps insurers understand and address them.