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Sharing of Responsibilities at the Federal and Provincial Levels
- Both supervise insurers.
- Fed (OSFI): ensure fed supervised companies able to meet obligations to p.h.
- Prov: similar to fed, in form of Superintendents for prov incorporated insurers. Prov regulation applies equally to prov and fed regulated companies.
- Insurers need to satisfy solvency req'ts where they were incorporated and each prov where they are licensed.
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Matters prov regulation is aimed at
- Regulatory req'ts for solvency
- Licensing of insurance companies, brokers, and claims adjusters
- Form and rate regulation:
- Terms of insurance contracts
- approval of premium rates
- Market conduct
- Sales practices and info disclosure
- claims settlement practices
- Compulsory coverage and residual markets
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Reforms made in the 1980's
- Prescribed format to file annual statements
- Require liabilities for UEP and provision for IBNR.
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Proposed reforms in the 1980's (4)
- capital and surplus requirements
- reinsurance adequacy
- assets quality
- reserves adequacy
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1990's reforms to Insurance Companies Act (6)
- Actuarial certification of claims and UPR adequacy
- Value policy liab accord to GAAP;
- Report on current and expected future financial position
- Report on material adverse matters
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2000's reforms to Insurance Companies Act (4)
- Discount liab on f.s.
- MCT
- External review of AAR
- New accounting standards (when to recognize and how to measure financial instruments on BS)
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