Office of the Superintendent of Financial Institutions
The Office of the Superintendent of Financial Institutions (OSFI) today released a revised version of its Earthquake Exposure Sound Practices (Guideline B-9) following a public consultation that began in August 2012.
In 2010, OSFI, its provincial regulatory partners -- British Columbia Financial Institutions Commission (FICOM) and Québec’s Autorité des marchés financiers (AMF) -- and the Insurance Bureau of Canada (IBC), formed a working group to review the original guideline, first developed in 1998. The guideline released today benefits from the working group’s expertise and the submissions received during the consultation period. The revised guideline represents a principles-based approach to managing earthquake exposure.
“OSFI has refreshed its guidance to reflect the lessons learned and technological changes that have occurred over the past fourteen years,” said Mark Zelmer, Assistant Superintendent, Regulation Sector. “The revised guideline will help Canadian insurance companies continue to be well prepared for the financial consequences if a major earthquake were to occur in Canada,” added Mr. Zelmer.
In addition to the guideline, a letter containing a summary of comments received and OSFI’s responses to them are available on its website.
OSFI continues to work with provincial regulators and the Insurance Bureau of Canada on related financial requirements and will incorporate any future changes made to the Minimum Capital Test (MCT) Guideline.
Created in 1987 by an Act of Parliament, OSFI is the primary regulator and supervisor of federally regulated deposit-taking institutions, insurance companies, and federally regulated private pension plans. OSFI's mandate is to advance and administer a regulatory framework that contributes to public confidence in a strong, stable and competitive financial system.