Riskonnect Case Studies
Excellus: Bottom Up Approach to Risk Management
Excellus is in a type of business that demands both quantitative and qualitative risk and is heavily regulated. ORSA (Own Risk and Solvency Assessment) requires that Excellus combines these two methods of risk assessments, which Excellus knew could not be done effectively or efficiently with a spreadsheet-based process. ORSA is a set of processes constituting a tool for decision-making and strategic analysis. It aims to assess, in a continuous and prospective way, the overall solvency needs related to the specific risk profile of the insurance company. According to the Society of Actuaries in the January 2014 Health Watch, the ORSA mandate is to prevent subsidiaries from taking on excessive risk. Insurance groups writing at least $1 billion in direct written and non-affiliate assumed premium are also subject to ORSA.