Office of the Superintendent of Financial Institutions
December 6, 2018
On December 6, 2018, Jeremy Rudin, Superintendent, spoke in front of an audience of over 400 insurance industry professionals at the KPMG's 27th Annual Insurance Conference in Toronto, Ontario.
During the fireside chat with Chris Cornell, Mr. Rudin spoke about what the insurance industry and OSFI are doing to address emerging risks and prepare for the future.
Mr. Rudin highlighted a few key areas that have captured the attention of the insurance industry and regulators:
- The impacts of climate change entails physical, liability and investment risks for insurers. The velocity of these risks is increasing and companies with large or long-term exposures need to understand the risks that they are taking on now may change in the future.
- Innovation in FinTech presents opportunities for insurers that have not been available before. With these new opportunities, attention must be paid to the new risks that may come along with them.
- In a fast moving world knowing where responsibility lies is an important decision-making element. OSFI's revised approach to corporate governance will make it easier for boards to concentrate on what matters.
Mr. Rudin also acknowledged the pending decision of the International Accounting Standards Board to delay implementation of IFRS 17 by one year until January 1, 2022. He underlined the importance for insurers to continue work towards implementation and not lose sight of work that needs to be done to support a smooth transition to the new standard.
"In pursuit of OSFI's mandate we need to supervise insurance companies to verify that are able to navigate through a range of severe yet plausible events while continuing to provide financial services to Canadians and maintaining public confidence. Continued consultation and transparency with the Industry is the best way to meet future challenges now."
The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada, established in 1987, to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks.
OSFI – Public Affairs