OSFI's proposed counterparty risk charge for life reinsurance ceded to registered reinsurersRelease Date: 11/24/2015 Staff Reference: Steve Easson
November 24, 2015
Mr. Jeremy Rudin
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.