Group Capital Calculation, Enterprise Risk Management, and ORSA Reports

Filing a Report Generally

Enterprise risk reports and ORSA summary report submissions should be explanatory in nature. Any references to another document (e.g., SEC 10K Filing or SEC 10Q Filing) should be specific and appropriately mapped. Commentary should be provided, as needed, to describe content and its relevance to ERM and ORSA. With regard to an enterprise risk report, if an item in section 82.2(b) of Regulation 203 is not applicable, then the report should explain why. Finally, an ultimate holding company or insurer should define any acronyms used and consider including in its report a glossary of these acronyms.

An enterprise risk report and ORSA summary report must be signed by the chief risk officer or other executive having responsibility for the oversight of the ERM function and must include the attestation set forth in section 82.2(b)(3) (ERM) or 82.3(b)(3) (ORSA) of Regulation 203.

When making a submission, the company or insurer should provide the following, as applicable, in a cover page:

  • Name of filing entity
  • NAIC Company Name(s)
  • NAIC Co. Code(s)
  • NAIC Group Code ID
  • Report or calculation date
  • Contact person’s name, e-mail address and phone number

Note: Submit reports and calculations as searchable documents, such as an OCR PDF file, with the exception that the signature page need not be searchable.

Group Capital Calculation

Insurance Law sections 1503(c), 1604(c), and 1717(c) require an ultimate holding company that directly or indirectly controls an insurer and a domestic insurer with subsidiaries (including a domestic corporation subject to Insurance Law Article 43) to file a group capital calculation by June 30 of each year when New York is the lead state, unless subject to an exception under the foregoing sections. The group capital calculation must be completed in accordance with the NAIC’s group capital calculation instructions.

Ultimate holding companies and insurers should file group capital calculations via the DFS Portal. To access the DFS Portal, you must have an account.

Visit the DFS Portal to log into, or create a DFS Portal account:

Enterprise Risk Management (ERM) Reports

Pursuant to Insurance Law sections 1503(b), 1604(b), and 1717(b), an ultimate holding company that directly or indirectly controls an insurer and a domestic insurer with subsidiaries (including a domestic corporation subject to Insurance Law Article 43) must adopt a formal enterprise risk management (ERM) function and file an enterprise risk report by April 30 of each year.

Regulation 203 (11 NYCRR 82) sets forth ERM function objectives and the information that must be discussed in an enterprise risk report. Regulation 203 also requires domestic insurers that have annual direct written premium and unaffiliated assumed premium, including international direct and assumed premium, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of $500 million or more and that are not part of an Insurance Law Article 15, 16, or 17 system to adopt an ERM function and file an enterprise risk report by April 30 of each year.

Although not required, it is helpful to include a description of the ultimate holding company’s or insurer’s ERM function. With regard to an enterprise risk report filed pursuant to Insurance Law Article 15, 16, or 17, there should be one report filed that covers the entire system and not a separate report for each insurer in the system.

The Department does not require an enterprise risk report to follow a certain format, however, an ultimate holding company or insurer must address in its report all of the items listed in section 82.2(b) of Regulation 203. To facilitate DFS review, a holding company or an insurer is encouraged to include a table of contents that provides an overview of the materials submitted; notations should be made, as needed, to indicate where in its filing each item in section 82.2(b) is addressed.

Filing an ERM Report

Enterprise risk management reports should be filed via DFS Connect.

To get started visit DFS Connect:

DFS Connect

For instructions on accessing or help using DFS Connect, see the DFS Connect User Guide and read our DFS Connect for Insurance Companies FAQs.

Own Risk and Solvency Assessment (ORSA) Summary Report

Section 82.3 of Regulation 203 generally requires a domestic insurer to regularly conduct an own risk and solvency assessment (ORSA) and to submit to the Superintendent an ORSA summary report by December 1 of each year. An ORSA must be conducted and an ORSA summary report must be prepared consistent with the NAIC’s ORSA Guidance Manual. A domestic insurer may comply with section 82.3 by submitting to the Superintendent the most recent and substantially similar ORSA summary report or reports provided by the domestic insurer or another member of the insurer’s holding company system, Article 16 system, or Article 17 system, to the head insurance regulator of another state or to a supervisor or regulator of a foreign jurisdiction, provided the information in the report is comparable to the information described in the ORSA Guidance Manual.

Section 82.3(c) exempts a domestic insurer from the requirements of section 82.3 if: (1) the domestic insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Insurance Program, of less than $500 million; and (2) where the domestic insurer is a member of a holding company system, Article 16 system, or Article 17 system, the system has annual direct written and unaffiliated assumed premium, including international direct and assumed premium, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Insurance Program, of less than $1 billion.

Filing an ORSA Report

Ultimate holding companies and insurers should submit ORSA summary reports online via the DFS Portal (even if not part of an Article 15, 16, or 17 system).

To get started visit the DFS Portal:

Once your Portal account has been created, you will receive an email with a temporary password to log in. When you log in, use the Ask for Apps tab to request access to the Insurance Company and Fraternal Benefit Society Filings application, for the company(ies) you will be filing for. Once approved, you will be able to access Insurance Company and Fraternal Benefit Society Filings application in your My Apps menu.

Browsers and Blockers

  • Use a supported browser including the latest version, plus one previous version, of Firefox, Chrome and Safari.
  • You may need to disable “pop-up blocker” settings in your browser before using DFS Connect.
  • Scheduled maintenance may make an application unavailable between 7:30 and 7:45 a.m.
  • Portal and DFS Connect apps may not be compatible with certain smart phones, tablets, and mobile devices.

Questions

Questions regarding a group capital calculation, enterprise risk report, or ORSA summary report should be sent to the appropriate person below: