KPMG.PACICC Flashcards
Identify the 2 types of insurers under OSFI’s solvency regulations
- Federally incorporated P&C insurers
- Canadian P&C branch operations of insurers incorporated outside Canada
Identify the type of insurers under provincial solvency regulations
P&C insurers incorporated in their own province
What is CCIR
Canadian Council of Insurance Regulators:
An association of insurance regulators from across Canada
What does CCIR do
Canadian Council of Insurance Regulators
Promote an efficient regulatory system to serve the public interest
What is the most common definition of an ‘actuary’
Someone with the FCIA designation is an actuary
Identify 2 exceptions to the most common definition of an ‘actuary’
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
Identify 3 options for addressing the deficiency in provincial solvency regulation versus IAIS
- Province can restrict regulation to market conduct and rely on OSFI for solvency regulation
- Province can upgrade its own solvency regulation
- Province can transfer solvency regulation to on another province that has higher standards
Describe a disadvantage of having separate federal and provincial solvency regulation
Separate regulation could create 2 classes of insurers (the PACICC guaranty fund may demand a higher risk premium from insurers with weak provincial regulation)