OTTAWA, ON, July 21, 2022 /CNW/ - Office of the Superintendent of Financial Institutions
Today, the Office of the Superintendent of Financial Institutions (OSFI) is releasing the final insurance capital guidelines that are updated to reflect implementation of International Financial Reporting Standards 17 (IFRS 17) - Insurance Contracts in January 2023. These guidelines recognize the improvements in the new international accounting standard of increased transparency and comparability of risks across the global insurance industry.
These final guidelines are the result of extensive, iterative and collaborative consultation with the insurance industry, stakeholders and other regulators. The input from these groups helped us achieve outcomes that make sense for the Canadian market. Canada's insurance industry is generally well-capitalized today under current accounting rules and will remain so after insurers implement IFRS 17.
OSFI's engagement with stakeholders results in effective guidelines that support OSFI's commitment to protect the rights and interests of Canadian policyholders and creditors and contribute to public confidence in the Canadian financial system.
Quotes
"The guidance released today is the result of the concerted efforts to adapt our guidance to IFRS 17, while ensuring that the requirements are appropriate for the Canadian context. I would like to thank our colleagues at the Autorité des marchés financiers for their collaboration in developing and implementing consistent capital expectations."
- Peter Routledge, Superintendent, OSFI
"I applaud the work of all the stakeholders involved, especially on the industry side, for whom the transition to IFRS 17 has been the focus of considerable efforts and investments. I would also like to thank the Office of the Superintendent of Financial Institutions, which worked closely with us throughout this multi-year project to ensure the implementation today of harmonized and robust capital requirements."
- Louis Morisset, President and CEO, AMF
Quick facts
- International Financial Reporting Standards 17 (IFRS 17) - Insurance Contracts is an international accounting standard that provides consistent principles for all aspects of accounting for insurance contracts.
- IFRS 17 increases transparency and comparability of risks across the global insurance industry and enables investors, analysts and others to meaningfully compare companies, contracts and industries.
About OSFI
The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada, established in 1987, to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks. OSFI supervises more than 400 federally regulated financial institutions and 1,200 pension plans to determine whether they are in sound financial condition and meeting their prudential requirements.
Related links
- Cover letter to insurance industry
- Letter to Life insurers
- Letter to Property and Casualty insurers
- Letter to Mortgage insurers
SOURCE Office of the Superintendent of Financial Institutions
OSFI - Media Relations, [email protected], 343-550-9373
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