As of January 1, 2015 insurers and insurance groups will be required to assess the adequacy of their risk management systems and to periodically conduct an Own Risk and Solvency Assessment (ORSA) consistent with the National Association of Insurance Commissioner’s (NAIC) ORSA Guidance Manual.
Insurers with annual premiums greater than $500 million and insurance groups with annual premiums greater than $1 billion will be required to submit an ORSA Summary Report annually to the Insurance Commissioner of the State of California. Insurers with annual direct written premium of less than $500 million are exempt from those provisions. However, the Commissioner will still have the authority to require an exempt insurer to conduct an ORSA based on specified criteria.
A late filing of an ORSA Summary Report could result in sanctions being leveled against the insurer.
According to the bill, AB 584, the Report is confidential, not subject to disclosure pursuant to the California Public Records Act and is not subject to subpoena or discovery in a civil action.