KPMG.PACICC

Question 1

identify the types of insurers under OSFI’s solvency regulations

Answer 1

• federally incorporated P&C insurers
• Canadian P&C branch operations of insurers incorporated outside of Canada

Question 2

identify the types of insurers under provincial solvency regulations

Answer 2

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 FCIA designation

Question 7

identify options for addressing the deficiency in provincial solvency regulation vs IAIS (International Association of Insurance Supervisors)

Answer 7

• province can restrict regulation to market conduct and rely an OSFI for solvency regulation
• province can upgrade its own solvency regulation
• province can transfer solvency regulation to another province that has higher standards

Question 8

describe a disadvantage of having separate federal and provincial solvency regulation

Answer 8

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