OSFI Overview of the Life Insurance Sector Consultation Findings

Dec., 2008 – In the spring of 2008, OSFI commissioned The Strategic Counsel, an independent research firm, to conduct a confidential consultation with life insurance companies, to explore perceptions of the current life insurance marketplace and of OSFI in general.

Since 1998, OSFI has commissioned regular consultations with key stakeholders of financial institutions to assess its effectiveness and fulfill its commitment to continuous improvement. The Life Insurance Sector Consultation is comprised of a series of confidential one-on-one interviews with executives and professionals representing a cross-section of the life insurance companies regulated by OSFI.

The final sample of participants was selected and interviewed by The Strategic Counsel independently of OSFI. The report presents the responses in summary form. Some of the key findings from the Life Insurance Sector Consultation are:

  • Overall, OSFI is perceived to be collaborative and responsive in its role as regulator.
  • The vast majority believe that OSFI focuses on the appropriate areas of risk in the life insurance sector.
  • OSFI is viewed as actively consulting with the life insurance industry in its development of guidance.
  • OSFI is perceived to clearly communicate its expectations and decisions related to applications for approvals.

While OSFI is generally perceived to be effective in the overall discharge of its mandate, some areas for improvement were identified.

OSFI is developing an action plan to address a number of the areas identified for improvement and will keep industry informed of its progress.

Read the complete letter at http://www.osfi-bsif.gc.ca/app/DocRepository/1/eng/reports/osfi/LISC_let_e.pdf

Read the report at http://www.osfi-bsif.gc.ca/app/DocRepository/1/eng/reports/osfi/LISC_e.pdf

OSFI is the primary regulator of federally regulated life insurance companies. OSFI’s mission is to protect the rights and interests of depositors, policyholders, pension plan members and creditors of financial institutions. OSFI advances and administers a regulatory framework that contributes to public confidence in a competitive financial system.

OSFI is an independent agency of the Government of Canada. It reports to the Minister of Finance. For more information visit www.osfi-bsif.gc.ca.