Summary of remarks to KPMG’s 2019 Insurance Conference

Neville Henderson
Assistant Superintendent, Insurance Supervision Sector
Office of the Superintendent of Financial Institutions

Toronto, ON
November 28, 2019

On November 28, 2019, Neville Henderson, Assistant Superintendent, Insurance Supervision Sector, spoke to insurance professionals at KPMG's 2019 Insurance Conference in Toronto.

During a closing fireside discussion with Chris Cornell, KPMG Canadian Insurance Sector Lead, Mr. Henderson covered a range of issues, including key trends, global shifts in risks and initiatives that will shape the Canadian and international insurance environments.

Although the Canadian insurance industry remains relatively healthy, challenges are on the horizon. Sustained low interest rates across the globe are still putting pressure on investment returns at the same time as uncertainty in global trade. Significant international insurance accounting rule changes are not yet final but the work on implementation must continue. Increased technological adoption by insurers and non-traditional competitors are reshaping the operations of the insurance industry as companies search for efficiencies, address changes in consumer expectations, and deal with aging demographics. All of these come at a time when the global movement to address climate risks is driving deeper consideration of the physical, legal and transition risks that arise, including the long-term value of carbon-linked assets.

Mr. Henderson outlined OSFI's strategic goals and approach of looking at the severe but plausible risks and acting accordingly. OSFI continues to engage with international standard-setters and regulators to keep on top of global developments and to contribute Canadian expertise.

Quote

"Our ongoing work with the industry on implementing IFRS 17; our continued dialogue with reinsurers; continued improvements in our supervision of cyber and technology risk, our deeper dives into the prudential aspects of climate risk; and the effects of aging populations are all ways that we are seeking to meet our mandate to protect policyholders."

[Link to conference website]

About OSFI

The Office of the Superintendent of Financial Institution (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.  

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