Toronto, Ontario, September 23, 2009 – In these turbulent economic times, actuaries both in Canada and abroad, are playing an increasingly important role in the proper functioning of financial service businesses. In Canada, the profession is uniquely recognized in legislation related to insurers. However, the pace of change today is unrelenting, and the profession needs to constantly re-examine its evolving role.
And that is what I want to discuss today: how the actuarial profession is evolving to embrace a wider and more important role in risk management; the importance of more frequent and rigorous stress testing; better integrating the roles of the Chief Risk Officer and the Appointed Actuary; and the growing importance of the CIA and Actuarial Standards Board to defend and maintain high risk management standards.
All of these issues are very important to OSFI given our reliance on the work of your profession.
In the remarks, Julie Dickson touched on:
- Challenges Facing the Insurance Sector
- Risk Management Expectations Rising Quickly
- Stress Testing Expectations
- OSFI’s Reaction
- Role of the Actuary in this New Environment
- Role of the CIA/ASB
In conclusion, I want to reiterate and emphasize that:
- The bar is rising in all areas of risk management, and that includes actuaries;
- Stress testing and capital planning are two areas where more is being demanded from actuaries;
- Introduction of IFRS � especially phase 2 � presents challenges that the profession should embrace. There can be a very important role, under IFRS, for the CIA and the ASB to maintain solid practices in Canada while still following IFRS standards that are principle-based; and
- The global financial crisis provides actuaries with a tremendous opportunity to demonstrate value and expand their influence, effectiveness and impact.
Read full remarks here
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.