Wolters Kluwer Assists Insurers Dealing with Requirements of RMORSA

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

The RMORSA Model Act is intended to help U.S. insurance companies analyze the effectiveness of their risk management programs, as well as their overall solvency and capital requirements, depending on the specific business, operational, and underwriting risks faced by their company. It applies to insurers that write more than $500 million of annual direct written and assumed premium, or groups collectively writing more than $1 billion.

ARC Logics' RMORSA functionality allows insurers to manage, measure, and monitor enterprise risk within a holistic platform, offering a governance tool that can help insurers meet core requirements of the RMORSA Model Act. It provides a centralized location to help insurers control risk across multiple disciplines, including legal, regulatory, operational, and financial, and understand how and where to deploy resources and capital.

The RMORSA Model Act, which takes effect Jan. 1, 2015, is part of the insurance industry's effort to ensure sound business practices after the financial crisis. Regulators and ratings agencies continue to increase requirements for insurers to implement ERM programs so they can gain a clear understanding of risk across their organizations.

“Given the model's effective date and the anticipated adoption by the states, the first required RMORSA reports would most likely rely on 2014 data, which means insurers must use 2013 to get programs and systems in place that will help ensure their reporting is accurate,” says Pam Ewing, general manager of insurance compliance solutions at Wolters Kluwer Financial Services. “Our goal is to help guide risk, compliance and operations officers through this process so they can manage the risk profile of their organization in an efficient, effective and centralized manner.”