Question

In bullet format (1) describe what ORSA is. (2) explain why it was created (3) tell me something about the outdoor economy and (4) why it is important to quantify. Your answer should be no more than a half page in bulleted format.

Answer 1

1. OSRA

• It is an assessment in which insurance companies had to issue their own assessment of their current and future risks through internal risk assessment process.
• This allowed regulators to get an enhanced view of the insurers ability to withstand stress.

2. Reason for creation :

• In 2008 , a global financial crisis was faced by American international group due to financial uncertainty
• A min insurance component of AIG holding company, faced huge losses from these risky investments
• In accordance to the financial Crisis,in 2011 the solvency modernization initiative voted to adopt new US insurance regulation called own risk and solvency assessment (ORSA).

3.outdoor economy:

• It is an important economic driver for the communities across the west
• It includes the national parks, national forest,monuments,pubic lands
• There are crucial to ensure that the outdoor recreation industry still remains an important part of western economies.
• Many Companies depend upon outdoor economy like companies making recreation gear, local shops that serve tourists etc.

4.importance of quantifying:

• It is necessary to quantify overall economy to measure the outdoor recreation economy's contribution to the overall U. S economy
• Quantification of outdoor economy will gain significsnt leverage in urging the government to invest in maintainance of the resources.