What is the nature of the Regulator Supervisory Report (RSR)?

The Regulator Supervisory Report (RSR) serves as a confidential document created primarily for the communication between a firm and its regulatory supervisor. Its main purpose is to provide a thorough assessment of the firm's compliance with regulatory requirements and to highlight any issues or areas of concern identified during supervisory reviews. The RSR typically includes recommendations for improvement, which are not intended for public distribution but rather for the firm’s management and the relevant supervisory authority.

This closed nature of the RSR ensures that sensitive information regarding compliance and operational performance remains within the regulatory framework, allowing firms to engage openly with their supervisors to address potential issues without fear of external scrutiny. Thus, the nature of the RSR as a private communication tool between the firm and regulator aptly reflects its intended use in monitoring and mitigating risks within the insurance sector.