The International Association of Insurance Supervisors has published two thematic notes to support jurisdictions transitioning to risk-based solvency regimes, supplementing its 2025 transition guidance. The notes explain how supervisors can use insurers’ own risk and solvency assessments as a foundation for regime design and how International Financial Reporting Standards, particularly IFRS 17 and IFRS 9, can inform solvency valuation and reporting. The ORSA note outlines a phased and proportionate implementation approach, including pilot assessments, supervisory feedback and gradual integration of quantitative elements. It explains how ORSA information on risks, mitigation, stress testing, capital targets and governance can help calibrate standard capital requirements and identify emerging risks. The IFRS note weighs the efficiency and audit benefits of using IFRS-based valuation against differences in accounting policy choices and reporting objectives. It identifies potential supervisory adjustments involving discount rates, risk adjustments and the contractual service margin, and calls for legacy solvency rules and reporting references to be aligned with IFRS 17 where necessary to preserve legal certainty and avoid duplicative reporting.
2026-07-15International Association of Insurance Supervisors
International Association of Insurance Supervisors publishes practical notes on ORSA and IFRS for risk-based solvency transitions
The International Association of Insurance Supervisors has issued two practical notes on using ORSA and IFRS to support transitions to risk-based solvency regimes. The notes cover phased ORSA implementation, capital calibration and the benefits and limitations of IFRS-based valuation. They also highlight potential supervisory adjustments and the need to align existing solvency rules with IFRS 17.