KPMG.PACICC

Question 1

Identify the 2 types of insurers under OSFI’s solvency regulations

Answer 1

1. Federally incorporated P&C insurers

2. Canadian P&C branch operations of insurers incorporated outside Canada

Question 2

Identify the type of insurers under provincial solvency regulations

Answer 2

P&C insurers incorporated in their own province

Question 3

What is CCIR

Answer 3

Canadian Council of Insurance Regulators:

An association of insurance regulators from across Canada

Question 4

What does CCIR do

Answer 4

Promote an efficient regulatory system to serve the public interest

Question 5

Is the term ‘actuary’ defined at the provincial or federal level?

Answer 5

Provincial

Question 6

What is the most common definition of an ‘actuary’

Answer 6

Someone with the FCIA designation is an actuary

Question 7

Identify 2 exceptions to the most common definition of an ‘actuary’

Answer 7

Alberta & British Columbia offer an exception:

A non-FCIA can serve as an actuary if the Minister is satisfied they have the necessary training and experience

The reason for the exception is to accommodate small provincial insurers without a FCIA on staff

Question 8

Identify 3 options for addressing the deficiency in provincial solvency regulation versus IAIS

Answer 8

1. Province can restrict regulation to market conduct and rely on OSFI for solvency regulation
2. Province can upgrade its own solvency regulation
3. Province can transfer solvency regulation to on another province that has higher standards

Question 9

Describe a disadvantage of having separate federal and provincial solvency regulation

Answer 9

Separate regulation could create 2 classes of insurers (the PACICC guaranty fund may demand a higher risk premium from insurers with weak provincial regulation)