Wolters Kluwer Financial Services is helping insurers addressrequirements of the NAIC's proposed Risk Management and Own RiskSolvency Assessment (RMORSA) Model Act by extending thecapabilities of its ARC Logics enterprise risk management(ERM) solution.

The RMORSA Model Act is intended to help U.S. insurancecompanies analyze the effectiveness of their risk managementprograms, as well as their overall solvency and capitalrequirements, depending on the specific business, operational, andunderwriting risks faced by their company. It applies to insurersthat write more than $500 million of annual direct written andassumed premium, or groups collectively writing more than $1billion.

ARC Logics' RMORSA functionality allows insurers tomanage, measure, and monitor enterprise risk within a holisticplatform, offering a governance tool that can help insurers meetcore requirements of the RMORSA Model Act. It provides acentralized location to help insurers control risk across multipledisciplines, including legal, regulatory, operational, andfinancial, and understand how and where to deploy resources andcapital.

The RMORSA Model Act, which takes effect Jan. 1, 2015, is partof the insurance industry's effort to ensure sound businesspractices after the financial crisis. Regulators and ratingsagencies continue to increase requirements for insurers toimplement ERM programs so they can gain a clear understanding ofrisk across their organizations.

“Given the model's effective date and the anticipated adoptionby the states, the first required RMORSA reports would most likelyrely on 2014 data, which means insurers must use 2013 to getprograms and systems in place that will help ensure their reportingis accurate,” says Pam Ewing, general manager of insurancecompliance solutions at Wolters Kluwer Financial Services. “Ourgoal is to help guide risk, compliance and operations officersthrough this process so they can manage the risk profile of theirorganization in an efficient, effective and centralizedmanner.”