Perhaps most notable about the report from the A.M. Best company, is its thorough accounting of the industry’s proliferate regulatory concerns. Ongoing changes include:- Higher capital reserving requirements for near-term segregated fund guarantees, required by OSFI (the Office of the Superintendent of Financial Institutions). A review of the Minimum Continuing Capital and Surplus Requirements (MCCSR) formula is ongoing, as well, with the possibility that OSFI will overhaul the entire regulatory capital framework, with implementation planned for 2018.

- Internal capital model reviews by OSFI, have resulted in the regulator’s requirement that companies conduct their Own Risk and Solvency Assessment (ORSA,) as an extension of company enterprise risk management efforts. “A.M. Best has observed that companies already have undergone considerable effort to fully understand and develop their risk management framework.” Compliance is expected by Dec. 31.

- The replacement of Canadian generally accepted accounting principles (CGAAP) with International Financial Reporting Standards (IFRS) for fiscal years beginning on or after January 1, 2011 is ongoing. Second phase implementation is currently pushed back until 2018, as the standards body regulating the change, examines the complexity involved when accounting for insurance contracts. “The final decision on this matter,” say the report’s authors, “could have significant impact on insurance companies’ financial reporting, capital management, and products.”

- Final actuarial standards from the Actuarial Standards Board (ASB), designed to reduce the sensitivity of company actuarial reserves, take effect Oct. 15.

- Canadian Securities Administrators (CSA) reforms to the Client Relationship Model (CRM2) took effect in July last year, and continue to be phased in over a three-year period. Changes include the need to provide greater transparency of fees and performance. New client statements required under CRM2, include an annual cost disclosure document to be shown, separately, for each client account by July 15, 2016.

- New national life license qualification standards are scheduled for implementation, January 1, 2016.