C-OSFI issued memo on expectations regarding the appointed actuary's report (AAR).
Report on valuation of actuarial for life, property and casualty, and mortgage insurers.
Memo defined expectations regarding the content of AARs that must be filed as specified in subsection 667(2) of the Insurance companies act (C-OSFI SC 1991 c.47).
Made significant changes to the memorandum; merged separate life insurance and property and casualty (P and C) insurance memorandums into a single document.
Replaced detailed prescription of form and content of AARs with outline of expectations
Moved instructions and guidance re supplementary tables to distinct documents.
Did not make significant additions to supplementary tables; did eliminate tables previously required in life insurance supplemental tables related to IFRS transition.
Added five tables to the mortgage insurer supplementary tables to collect IFRS 17 information related to the general measurement approach calculation of liabilities.
Moved instructions for the completion of tables from the Memorandum to the tables.
AAR Memo Provisions
Report includes text that describes valuation and the assumptions and considerations that were employed in that work, regulatory schedules and supplementary tables.
Must include text, calculations that support capital tests for P and C, mortgage insurers
Memo provided guidance on first component of AAR, specifically types and extent of data required to describe valuation; described detail necessary to support capital tests.
Additionally, filing instructions for the AAR (as well as the reports on financial condition testing, FCT, and peer review) are provided in Appendix I of the memorandum.
Effectiveness
Apply memo guidance to reports submitted for fiscal years ending Dec. 31, 2024.
