Letter to the New York Department of Financial Services on proposed regulation regarding enterprise risk management and own risk and solvency assessment

SUMMARY

In a letter to the New York Department of Financial Services, the Committee on Insurance Lawprovided comments on the proposed regulation governing enterprise risk management (ERM) and own risk and solvency assessment (ORSA). The letter suggests a number of changes to the proposal, including : 1) clarification that an ORSA Report need only cover a prior period; 2) clarification that an ERM report is required to cover the calendar year ending the December 31 prior to the submission date; 3) that the Department adequately recognize the sensitive and proprietary nature of ORSA information; and 4) that the Proposed Regulation clarify that the “enterprise risk report” requirement under Section 82.2(b), including the attestation requirement set forth in Section 82.2(b)(4), may be satisfied by using Form F as set forth in the model holding company regulations of the National Association of Insurance Commissioners.