Information for Insurers - OSFI Guidelines adopted and issued by the Superintendent of Insurance

Overview - Guidelines for Provincially
Regulated Insurance Entities

In accordance with section 792.1 of the Insurance Act, the Superintendent of Insurance has adopted and issued the following Guidelines of the Office of the Superintendent of Financial Institutions (OSFI Guidelines), including future revisions, for all provincially incorporated Property and Casualty Insurers, Life Insurers and Reciprocal Insurance Exchanges, either formed under the Insurance Act, or who have transferred to Alberta such that Alberta is their primary regulator, (collectively, “provincially regulated insurance entities”).

Apart from differences due to law and unless otherwise stated, the Superintendent of Insurance has adopted and issued these Guidelines, including revisions thereto, in full. The Superintendent intends to apply the OSFI Guidelines with appropriate discretion having regard to the size, risk, complexity and structure of each provincially regulated insurance entity. The Superintendent of Insurance may, with appropriate discretion, require extra-provincial incorporated entities licensed to operate in Alberta to comply with the OSFI Guidelines.

The Superintendent of Insurance supervises and regulates provincially regulated insurance entities to determine whether they are in sound financial condition and are complying with the legislative requirements, guidelines and supervisory expectations. To accomplish this, the Superintendent of Insurance uses a risk-based Supervisory Framework to identify imprudent or unsafe business practices within the insurance industry and intervenes on a timely basis, as required.

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Related Superintendent of Insurance Interpretation Bulletins

  • 05-2016:  Adoption of OSFI Guidelines: IFRS 9 - Financial Instruments and Disclosures; E21, Operational Risk Management; and Cyber Security Self-Assessment (July 2016)
  • 08-2013:  Adoption of OSFI Guideline E19, Own Risk and Solvency Assessment (December 2013)
  • 02-2013:  Adoption of OSFI Guidelines for Provincially Regulated Insurance Entities (March 2013)
  • 01-2013:  Supervision of Provincially Regulated Reciprocal Insurance Exchanges (March 2013)

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OSFI Guidelines adopted and Issued by the Superintendent of Insurance for Provincially Regulated Insurance Entities

Click here to access all OSFI's Guidelines, which are available on their website. The links below go to specific guidelines, and will open in a new window. You may use the index below to go to specific types of guidelines.

Guidelines Index

Line
No.
Ref. OSFI Guideline Name Date Adopted
by Alberta
Applicable to:
Life Insurance
Companies
P&C Insurance Companies Reciprocals
Capital Adequacy Requirements
1 A

Minimum Continuing Capital
and Surplus Requirements:
- Effective January 1, 2016
- Effective January 1, 2015
- Effective January 1, 2013

Life Insurance Capital Adequacy Test (LICAT):
- Effective January 1, 2018
See also: LICAT Public Disclosure Requirements:
- Effective December 31, 2018

November 2014 X    
2 A Minimum Capital Test:
- Effective January 1, 2018
- Effective January 1, 2015
- Effective January 1, 2013
November 2014   X X
3 A-4 Regulatory Capital and
Internal Capital Targets:
- Effective January 1, 2018
- Effective November 2015
March 2013 X X X
See
also:
A
A-4
Prudential Limits and Restrictions
4 B-1 Prudent Person Approach
See also:  Alberta Statutory Investment and Lending Limits for Provincially Regulated Insurance Entities
March 2013 X X X
5 B-4 Securities Lending - Life March 2013 X    
6 B-4 Securities Lending - P&C March 2013   X X
7 B-5 Asset Securitization March 2013 X X  
8 B-7 Derivatives Best Practices March 2013 X X  
9 B-9 Earthquake Exposure
Sound Practices
March 2013   X X
10 B-11 Pledging March 2013 X X X
11 E-2 Commercial Lending Criteria March 2013
X    
Accounting and Disclosure
12 n/a Life Insurance Capital Adequacy Test Public Disclosure Requirements:
- Effective December 31, 2018
April 2018 X    
13 n/a IFRS 9 - Financial Instruments
and Disclosures
July 2016 X X X
14 C-1 Impairment - Sound Credit Risk Assessment and Valuation
Practices for Financial
Instruments at Amortized Cost
March 2013 X X X
15 D-1A Annual Disclosures
(Life Insurance Enterprises)
March 2013 X    
16 D-1B Annual Disclosures
(P&C Insurance Enterprises)
March 2013   X X
17 D-5 Accounting for Structured Settlements March 2013   X  
18 D-6 Derivatives Disclosure March 2013 X X X
19 D-9 Source of Earnings Disclosure
(Life Insurance Companies)
March 2013 X    
20 D-10 Accounting for Financial Instruments Designated as Fair Value Option
March 2013 X X X
Sound Business and Financial Practices
21 n/a Corporate Governance Guideline March 2013 X X X
22 B-3 Sound Reinsurance Practices
and Procedures
March 2013 X X X
23 B-8 Deterring and Detecting
Money Laundering
March 2013 X    
24 B-10 Outsourcing of Business Activities, Functions and Processes March 2013 X X X
25 B-20 Residential Mortgage Underwriting Practices and Procedures:
- Effective January 1, 2018
- Effective November 2014
March 2013 X X  
26 E-5 Retention/Destruction of Records March 2013 X    
27 E-13 Regulatory Compliance
Management Guideline
March 2013 X X X
28 E-14 Role of the Independent Actuary March 2013 X    
29 E-15 Appointed Actuary: Legal
Requirements, Qualifications
and Peer Review
March 2013 X X X
30 E-17 Background Checks on Directors
and Senior Management
March 2013 X X X
31 E-18 Stress Testing March 2013 X X X
32 E-19

Own Risk and Solvency Assessment:
- Effective January 1, 2018
- Effective November 2015
See also: ORSA Key Metrics:
- P&C Insurers Report Form
- Life Insurers Report Form
and Supplement to ORSA Guideline effective January 1, 2014

December 2013 X X X
33 E-21 Operational Risk Management
See also:
Self-Assessment Template (Excel)
and Instructions (pdf)
July 2016 X X X
34 n/a Cyber Security Self-Assessment Guidance and
Supplement to Cyber Security Guidance, effective July 19, 2016
July 2016 X X X
Page last updated:  August 28, 2018