OSFI’s Strategic Plan focuses on cultivating the readiness and resilience of federally regulated financial institutions (FRFIs) and federally regulated pension plans (FRPPs) to financial risks and non-financial risks that could potentially adversely affect their financial condition. In light of the Strategic Plan, OSFI recently published a list of the guidance that it anticipates releasing in the near term. Below is a summary of all of the guidance that OSFI intends to release which relates to insurance companies.
Risk Management Guidance
Industry Letter on Climate-related Risks
• Summarizes feedback received on OSFI’s Climate-related Risks Discussion Paper issued in Q1 2021 and setting out OSFI’s proposal for future climate related risk initiatives.
• Timeframe: Q3 2021
Industry Letter on Technology Risk
• Summarize feedback received on OFSI’s Technology Risk Discussion Paper issued in Q3 2020 and sets out future guidance initiatives
• Timeframe: Q2 2021 (Released on May 10, 2021)
Industry Letter on Operational Resilience
• Seeks views on integrating new Basel Committee on Banking Supervision Principles for Sound Management of Operational Risk and Principles of Operational Resilience into OSFI’s guidance
• Timeframe: Q3 2021
Final Guideline B-2 on Property and Casualty Large Exposure
• Establish OSFI’s expectations with respect to large exposures of property and casualty insurance companies
• Timeframe: Q4 2021
Final Guideline B-2 on Insurance Practices and Procedures
• Establish OSFI’s expectations related to reinsurance practices
• Timeframe: Q4 2021
Develop Guideline on Technology/Cyber Risk
• Develop OSFI’s expectations for technology and cyber risk management
• Timeframe: Q4 2021
Draft Revised Guideline B-10 on Third Party Risk
• Develop OSFI’s expectations for third party risk
• Timeframe: Q1 2022
Industry Letter on Advanced Analytics and Model Risk
• Develop OSFI’s expectations for advanced analytics and model risk
• Timeframe: Q1 2022
Consultative Document on Culture and Reputation Risk
• Develop OSFI’s expectations for culture and reputation risk
• Timeframe: Q1 2022
Capital and Accounting Guidance
Discussion paper on the Assurance of Capital, Leverage and Liquidity Returns
• Develop OSFI’s expectations on assurance of Deposit-Taking Institutions and insurance capital, leverage and liquidity returns
• Timeframe: Q2 2021 (Released on April 13, 2021)
Draft Guidelines on Assurance of Capital, Leverage and Liquidity Returns
• Develop OSFI’s expectations on assurance of Deposit-Taking Institutions and insurance capital, leverage and liquidity returns
• Timeframe: Q4 2021
Final Guideline on Assurance of Capital, Leverage and Liquidity Returns
• Develop OSFI’s expectations on assurance of Deposit-Taking Institutions and insurance capital, leverage and liquidity returns
• Timeframe: Q1 2022
Other
Semi-Annual IFRS 17 Progress Reporting
• Insurers reporting to OSFI on IFRS 17 implementation progress
• Timeframe: Q1 2021
Final IFRS 17 Regulatory Returns
• Regulatory Returns reflecting impact of adopting IFRS 17
• Timeframe: Q2 2021 (Released on April 30, 2021)
Draft LICAT, MCT, MICAT Guidelines for IFRS 17
• Cover updates to the capital frameworks for insurers triggered by IFRS 17
• Timeframe: Q2 2021
Semi-Annual IFRS 17 Progress Reporting
• Insurers reporting to OSFI on IFRS 17 implementation progress
• Timeframe: Q3 2021
Consultation on Draft Methodology for Determining Capital Requirements for Segregated Fund Guarantee (SFG) Risk
• QIS 5 and public consultation of the draft Chapter 7 of LICAT (i.e. the draft standard approach) and SFG-related regulatory returns
• Timeframe: Q3 2021
The timelines listed above are reflective of the current OSFI strategic plans as of May 6, 2021. Plans may be subject to change or amended here.
