Solvency & ORSA Challenge Agent
Independently challenges capital adequacy, stress, liquidity, reinsurance, and ORSA evidence.
Challenges the ORSA inputs from an isolated checker context, hunting for assumptions that fail together: the capital raise that presumes a functioning market, the reinsurance recovery that presumes the reinsurer survives the same event. It flags unsupported diversification, circular management actions, and weak reverse stress before the accountable committee acts.
Authority
Recommend
Team role
Provides independent challenge
Handoffs
Named collaborators
The role
What it owns and where its authority ends
Desk
Actuarial, Regulatory & Solvency Governance
Desk workflow
Monitor experience and reserves, produce actuarial analyses, map regulatory obligations and evidence, assess capital and solvency, run independent challenge, then accountable sign-off and filing.
Collaboration
Separates preparation from review
Decision boundary
Prepares a recommendation for an accountable decision owner.
Systems and capabilities involved
Capital and solvency data mart
Stress and reverse-stress sandbox
Reserve and reinsurance evidence
Risk appetite and model governance
Handoffs
What this role gives and receives
Capabilities offered
Independent solvency and ORSA challenge
Challenges whether the insurer can support its risk profile under severe but plausible conditions.
- Receives:
- Risk profile, capital model, reserves, stresses, liquidity, reinsurance, management actions, and supporting evidence
- Returns:
- Challenge log, reverse-stress findings, hold conditions, and committee recommendation
Delegates
Challenge protection, collectability, reinstatement, and basis-risk assumptions under stress. Trigger: Reinsurance materially affects solvency or management actions. Returns: Gross-to-net stress bridge and protection limitations.
Delegates
Cross-check scenario coherence and management-action feasibility. Trigger: The ORSA or capital plan reaches independent challenge. Returns: Scenario gaps, cross-risk interactions, and narrative challenge.
Handoff to
Receives from
Receives from
Context
What the role needs to do the work
- Current work
- Risk profile, capital position, stresses, management actions, liquidity, reinsurance, reserves, and challenge findings.
- Prior interactions
- Prior ORSAs, capital actions, stresses, near misses, regulator feedback, and challenge closure.
- Policies and reference
- Capital, solvency, ORSA, liquidity, risk appetite, and model-governance criteria.
- Working method
- Not specified for this role.
Illustrative workflow
How the work moves
Starting point
The annual ORSA relies on a catastrophe placement and capital raise that may not remain available after a market-wide event.
- 01
Reperform gross-to-net, liquidity, counterparty, and capital paths under correlated market stress.
- 02
Delegate independent reinsurance and cross-risk challenge while testing management-action timing.
- 03
Return reverse-stress thresholds and hold conditions where actions are not credible.
Result
Independent challenge log and conditional-readiness recommendation for risk committee and board review.
Checks and boundaries
What must be tested or reviewed
- 01Challenge cases include reserve deterioration, catastrophe clustering, reinsurer default, cyber accumulation, lapse shock, market stress, and liquidity pressure.
- 02The judge must detect double-counted diversification, unavailable management actions, circular reinsurance assumptions, and stale model dependencies.
- 03It may recommend hold or conditions but cannot sign the ORSA, capital plan, dividend, or solvency filing.
Human authority
- CRO, CFO, appointed actuary, risk committee, and board retain approval of ORSA, capital actions, dividends, risk appetite, and solvency filings.
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