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OSFI Updates Part XIII Changes

The Office of the Superintendent of Financial Institutions has issued a final update on upcoming amendments to Part XIII of the Insurance Act before they take effect January 1.

In a December 15 memo, the regulator outlines amendments to guidelines on minimum continuing capital and surplus requirements, the role of the chief agent, record keeping requirements, the role of the independent actuary and disclosure obligations. It also updates reporting requirements, noting that specific reporting updates for P&C marine insurance won’t be available until January 2010.

The memo includes implementation instructions, a Q&A on the process and updated, previously issued letters on Part XIII.

Of the disclosure amendments, the memo acknowledges some disparities with regional requirements. “OSFI is working together with provincial/territorial regulators to gradually reduce conflicts between their requirements and the above disclosure obligations,” it states. “However, OSFI recognizes that it may not be possible in all instances to have the required statement printed on the above noted documents, especially where other jurisdictions prescribe a strict content for such document.”

In a separate letter to consumers, OSFI assures them that  if  a foreign insurer faces insolvency, “the assets under OSFI’s oversight would be available to satisfy the claims of holders of policies issued or made in the course of the foreign insurer’s insurance business in Canada.” 

For further information, visit http://www.osfibsif.gc.ca/osfi/index_e.aspx?ArticleID=2729.