Guideline

OSFI Guidance Adopted for Insurers in British Columbia
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Date
27 February 2025
Distribution
Insurance

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Accordion items

Introduction

On an ongoing basis, BCFSA evaluates and, where appropriate, adopts guidance issued by the Office of the Superintendent of Financial Institutions (“OSFI”) for the insurance segment in British Columbia (“B.C.”). This Guideline sets out which OSFI guidance BCFSA has adopted and, where applicable, provides further instruction on BCFSA’s application of the guidance.

BCFSA expects insurance companies incorporated in B.C. (“B.C. insurers”) to follow all applicable adopted guidelines as outlined in this Guideline. For non-federal extraprovincial insurance corporations (“non-federal extraprovincial insurers”), BCFSA expects them to follow the guidance of their primary jurisdiction unless stated otherwise in the notes below.

A quick reference table is provided in the Appendix.

Adopted guidance

Appendix: Quick Reference Sheet

Please visit OSFI’s Guidance Library to find the guidelines mentioned below.

GuidanceLifeP&C
A-4 Regulatory Capital and Internal Capital Targets X X
B-1 Prudent Person Approach* X X
B-2 Investment Concentration Limit* X
B-2 Large Exposure Limits X
B-3 Sound Reinsurance Practices and Procedures* X X
B-4 Securities Lending (Life) X
B-4 Securities Lending (P&C) X
B-5 Asset Securitization X X
B-7 Derivatives Sound Practices X X
B-9 Earthquake Exposure Sound Practices Memorandum X
B-11 Pledging X X
B-20 Residential Mortgage Underwriting Practices and Procedures X X
Corporate Governance X X
D-5 Accounting for Structured Settlements X
E-2 Commercial Lending Criteria X
E-5 Retention/Destruction of Records X
E-6 Materiality Criteria for Related Party Transactions (Life) X
E-6 Materiality Criteria for Related Party Transactions (P&C) X
E-10 Use of Depositories by Insurance Companies* X X
E-13 Regulatory Compliance Management X X
E-15 Appointed Actuary: Legal Requirements, Qualifications, and Peer Review* X X
E-18 Stress Testing* X X
E-19 Own Risk and Solvency Assessment (“ORSA”) X X
E-21 Operational Risk Management X X
E-22 Margin Requirements for Non-centrally Cleared Derivatives X X
IFRS 9 Financial Instruments and Disclosures X X
Life Insurance Capital Adequacy Test (“LICAT”) X
Memorandum to the Appointed Actuary X X
Minimum Capital Test (“MCT”) X
Mortgage Insurer Capital Adequacy Test (“MICAT”) X
*indicates that there are BCFSA notes related to the guidance