OSFI's proposed counterparty risk charge for life reinsurance ceded to registered reinsurers


Date de parution : 11/24/2015
Personne(s)-ressource(s) : Steve Easson

November 24, 2015

Mr. Jeremy Rudin
Superintendent
Office of the Superintendent of
Financial Institutions Canada
255 Albert Street
Ottawa, ON K1A 0H2

Dear Mr. Rudin,

Re: OSFI’s proposed counterparty risk charge for life reinsurance ceded to Registered Reinsurers

I am writing you to express the concerns of the Canadian life insurance industry on OSFI’s proposal to introduce a counterparty risk charge for business ceded to (OSFI regulated) registered reinsurers.

Over the last three years, the CLHIA and its member companies, both direct writers and reinsurers, have worked extensively with OSFI’s Capital Division, and with the AMF, on analyzing OSFI’s proposal to introduce, in 2018, a charge of 2.5% of ceded policy liabilities.