1. The document provides a non-technical guide to the Own Risk and Solvency Assessment (ORSA) requirements for insurers in Qatar. 2. ORSA requires insurers to conduct an annual assessment of their overall solvency needs and risk management policies using various scenarios and stress tests. 3. Insurers must prepare an ORSA report that includes a statement of board approval and provide it to regulators, updating the report if risks change significantly.

1. A non-technical
guide to ORSA
Requirements in
Qatar
JABRAN NOOR, FSA FIA
Executive Director - Actuarial & Risk Management
Tajweez Advisory
tajweezactuarial.com
NON-TECHNICAL GUIDE SERIES

2. Tajweez Actuarial provides a brief synopsis of the
Insurance Regulations in the GCC through the
“Non-Technical Guide Series”
We aim to bring clarity and achieve common
understanding of compliance requirements.
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3. 2.
3.
1. What is ORSA?
ORSA Report
3
ORSA Requirements
4. Our Services

4. Implemented the Own Risk and
Solvency Requirement (ORSA)
in 2015.
Companies have to comply
with QFC PINS Part 2.4
requirement starting year end
2015
QATAR
4

5. Tajweez Advisory CO WLL - ORSA Requirements in Qatar - Jabran Noor
What is ORSA?
5
2015
adequacy of an insurer’s
risk management
policies, procedures and
controls
insurer’s present and
future solvency positions
Detailed forward looking
assessment of
2015
“Own” solvency
assesment - current &
future
Management of material
risks
Identify potential business
vulnerabilities
Objectives

6. Tajweez Advisory CO WLL - ORSA Requirements in Qatar - Jabran Noor
What is ORSA?
6
1. What is meant by “Own” in ORSA?
The assessment of risk and solvency under ORSA is made by the Company itself as oppossed to any pre-
defined standard. Because ORSA is a part of company’s risk management strategy, the company should
have regard to the other factors included in that strategy, including risk profile, tolerance and exposure
while conducting ORSA.
2. Is ORSA a management tool or supervisory tool?
ORSA is both a mangement tool and a supervisory tool. In order to gain full advantage of ORSA, companies
should embed it within the decision making procedure. It should be robust enough to provide confidence to
the Company and the Regulator that the Company has the ability to remain solvent in face of risks faced by
it. ORSA should be adequately documented in order to satisfy the regulator.

7. Tajweez Advisory CO WLL - ORSA Requirements in Qatar - Jabran Noor
What is ORSA?
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3. What is meant by “forward looking” ?
ORSA is not a performance measurement tool evaluating the past performace of the Company. Instead it
projects the ability of the Company to meet current and future capital adequacy, manage material risks and
helps in identifying future vulnerabilities.
4. ORSA is just a fancy name for Financial Condition Report?
ORSA is unique because it encourages the management to consider risk management not as a compliance
exercise but as a management tool. Companies are encouraged to anticipate potential capital needs and
take actions before it is too late.
ORSA is not a one-off exercise. It is a continuous evolving process and should be a component of
Company’s Enterprise Risk Management. Furthermore, ORSA is not an assessment of the actuary but the
Company itself.

8. Tajweez Advisory CO WLL - ORSA Requirements in Qatar - Jabran Noor
What is ORSA?
8
its overall solvency needs
own view of capital adequacy
actions taken for management of risks
financial resources needed to manage
business prudently and to meet minimum
capital requirements
nature and quality of capital resources
needed
impact on solvency of reasonably
foreseeable change in risk profile
multi-period assessment of solvency,
minimum capital and business
continuation
In ORSA, Insurer must consider

9. Tajweez Advisory CO WLL - ORSA Requirements in Qatar - Jabran Noor
What is ORSA?
9
2015
Stress Tests
Occurance of extreme
events
unlikely but possible
adverse scenarios that
would disrupt insurer’s
business model
Quantitative Evaluation
0
7.5
15
22.5
30
0 Q1Y1 Q2Y1 Q3Y1 Q4Y1 Q1Y2 Q2Y2 Q3Y2 Q4Y2
7 7 7 7 7 7 7 7 7
21
19
10
14 13 12 11 12 11
21
19 20 21
25 25 24
26
28
Normal Environment
Stressed Environment
Risk Tolerance
Time Period

10. Tajweez Advisory CO WLL - ORSA Requirements in Qatar - Jabran Noor
ORSA Requirements
10
QFC Entity should carry out ORSA annually.
Assessment appropriate to nature, scale and complexity of insuer’s business
Financial resources needed to manage business prudently and to meet minimum capital
requirements under range of scenarios

11. Tajweez Advisory CO WLL - ORSA Requirements in Qatar - Jabran Noor
ORSA Requirements
11
Methods will differ between insurers, ranging from simple to complex
Insurers will have to make own judgement about complexity, stress tests, assumptions etc.
Insurers are expected to be transparent in their approach and maintain auditable records
Practical Considerations

12. Tajweez Advisory CO WLL - ORSA Requirements in Qatar - Jabran Noor
ORSA Report
12
2015
After conducting the ORSA, insurer must prepare a report that includes a statement that
the board of the insurer participated in the assessment and approved the report.
Insurer must provide a revised ORSA report if the circumstances or risk profile of the
insurer changes
Regulator may ask for revised report in case the methodology is not robust

13. Tajweez Advisory CO WLL - ORSA Requirements in Qatar - Jabran Noor
Our Services
13
Gap Analysis
Development of Models
ORSA Compliance Report
ORSA Documentation
Facilitate Implementation
Stochastic Modeling

14. • The guide has been prepared to
describe the regulation in a simple
manner. It is in no means a substitute
to the original regulation.
• No liability is assumed regarding the
accuracy of the information
contained. We welcome your
feedback on any aspect of the report.
• The report should not be reproduced ,
published or disseminated, in part of
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Tajweez Advisory.
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15. tajweezactuarial.com
Jabran Noor, FSA FIA
Executive Director -
Actuarial & Risk Management
jabran.noor@tajweez.com
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