The European solvency II agreement and the new Mexican insurance and surety regulation require institutions to periodically conduct an Own Risk and Solvency Assessment. In Mexico this assessment includes the Dynamic Solvency Test (DST).
The ORSA should be an integral part of the business management, providing a holistic view of the risks that affect an institution, contributing with quality information for strategic decisions and optimal use of capital. On the other hand, the ORSA allows institutions to know their total solvency needs according to their business goals.
The DST is an exercise required in the Mexican regulation that has the purpose of assessing the sufficiency of the institution’s own funds to meet the solvency capital requirement (SCR) in several prospective scenarios of its operation.
Numeravi offers consultancy services to convert the ORSA and the DST into instruments to optimize the use of capital of insurance and surety institutions, by estimating their real solvency level and own funds requirements based on their business goals and risk exposure. With Numeravi’s consultancy institutions will achieve: