Sound Reinsurance Practices and Procedures

Document Properties

  • Type of Publication: Letter
  • Date: December 24, 2010
  • To:
    • Federally Regulated Life Insurance Companies, including Fraternal Benefit Societies
    • Federally Regulated Property and Casualty Insurance Companies

Guideline B-3 is now being released in final form following a comprehensive policy review of OSFI’s regulatory and supervisory approach to reinsurance, and subsequent public consultations on a draft version of the Guideline issued in August 2010. This final version of Guideline B-3 supersedes the February 1997 Guideline on Unregistered Reinsurance.

Guideline B-3 sets out OSFI’s expectations with respect to sound reinsurance risk management practices and procedures. It applies to all federally regulated insurers, including life insurers and property and casualty insurers, domestic insurance companies and foreign insurance companies in respect of their insurance business in Canada, registered reinsurers, and fraternal benefit societies, that are party to reinsurance cessions, retrocessions, and, where applicable, to assumption reinsurance transactions.

Please refer to the Implementation / Transition section of Guideline B-3 for details on OSFI’s implementation expectations and corresponding timelines.

Questions concerning Guideline B-3 should be addressed to Mr. Philipe-A. Sarrazin at (613) 998-4190, by e-mail at, or by facsimile at (613) 998-6716.

  • Mark E. White
  • Assistant Superintendent
  • Regulation Sector