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 Canada
(these are called Federal P&C Insurers)

Question 2

Identify the types of insurers under provincial solvency regulations

Answer 2

P&C Insurers incorporated in their own province
(these are called Provincial P&C Insurers)

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 (since definition varies in BC and AB)

Question 6

What is the most common definition of an actuary?

Answer 6

Someone with an FCIA designation

Question 7

Identify an exception to the most common definition of an “actuary”

Answer 7

AB & BC offer an exception:
1. 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 accomodate small provincial insurers without a FCIA on staff

Question 8

Identify options for addressing the deficiency in provincial solvency regulations vs IAIS (3)

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 on to 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 guarantee fund may demand a higher risk premium from insurers with weak provincial regulation