Backgrounder: Insurance regulatory returns update due to IFRS 18

Overview

The Office of the Superintendent of Financial Institutions (OSFI) is publishing final regulatory return templates for federally regulated insurers. The updates reflect the International Financial Reporting Standard (IFRS) 18: Presentation and Disclosure in Financial Statements, which takes effect for reporting periods beginning in 2027.

IFRS 18 introduces new presentation and disclosure requirements for financial statements, including a new statement of profit or loss structure organized into operating, investing, and financing categories. As federally regulated insurers report under IFRS, they will apply the new standard in their financial reporting.

The updated returns support more consistent, comparable, and transparent regulatory reporting across the insurance sector. Consistent reporting helps OSFI assess risks across institutions, identify emerging issues, and monitor trends across the industry.

Because IFRS 18 is a presentation and disclosure standard, it does not change how assets or liabilities are measured. As a result, OSFI's supervisory analysis will not change materially.

OSFI developed the final returns based on feedback from industry participants and external auditors.

Why it’s important

IFRS 18 changes how insurers present and disclose financial information, including introducing a new statement of profit or loss structure organized into operating, investing, and financing categories. OSFI has updated its regulatory return templates and supporting schedules to reflect these changes.

The updated returns provide a more standardized reporting format across the insurance sector, supporting consistent and comparable regulatory reporting. This helps OSFI assess risks, identify emerging issues, and monitor trends across federally regulated insurers.

Next steps

For insurers with a December 31 fiscal year-end, the final returns take effect on January 1, 2027. For insurers with an October 31 fiscal year-end, they take effect on November 1, 2027.