A joint committee of insurance watchdogs takes next step towards standardized regulatory approach.
A new standardized life insurance approach is one step closer.
Canadian insurance regulators issued a new policy paper outlining the most recent thinking on a new standardized approach to setting capital requirements for life insurers.
“The revised approach should better align measures of risks with the economic reality faced by life insurers, thereby promoting appropriate risk management and business decisions,” said the paper, prepared by the Standard Approach Advisory Group (SAAG), a Joint Committee of OSFI, AMF and Assuris.
The paper contains a summary of the rationale and basis for the methodologies tested in the 6th Quantitative Impact Study (QIS) of November 2014.
OSFI and l’Autorité des marchés financiers (AMF) are conducting a review of their life insurance capital framework.
The primary aim of the review is to consider developments in the areas of financial reporting, actuarial methodology, economic capital and financial theory, and to produce a revised capital guideline with an improved assessment of solvency risk.
This revised standard approach, tested in QIS6, includes credit, market, insurance and operational risks. It includes credit for risk mitigation – reinsurance and fixed hedging, risk diversification – within risks and between risks and credit for discretionary features such as participating and adjustable products.
Canadian insurance regulators issued a new policy paper outlining the most recent thinking on a new standardized approach to setting capital requirements for life insurers.
“The revised approach should better align measures of risks with the economic reality faced by life insurers, thereby promoting appropriate risk management and business decisions,” said the paper, prepared by the Standard Approach Advisory Group (SAAG), a Joint Committee of OSFI, AMF and Assuris.
The paper contains a summary of the rationale and basis for the methodologies tested in the 6th Quantitative Impact Study (QIS) of November 2014.
OSFI and l’Autorité des marchés financiers (AMF) are conducting a review of their life insurance capital framework.
The primary aim of the review is to consider developments in the areas of financial reporting, actuarial methodology, economic capital and financial theory, and to produce a revised capital guideline with an improved assessment of solvency risk.
This revised standard approach, tested in QIS6, includes credit, market, insurance and operational risks. It includes credit for risk mitigation – reinsurance and fixed hedging, risk diversification – within risks and between risks and credit for discretionary features such as participating and adjustable products.
