Transcript P&C Financial Reporting Committee

OCCA
2006 Spring Meeting
P&C Financial Reporting
Committee
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
OVERVIEW
― Mandate and membership
― 2005/2006 Priorities and Update
― Current Projects
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DCAT
Fair Value
Materiality
PfADs
― Liaison
― CIA Committee on Risk Management and
Capital Requirements (RMCR)
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
MANDATE
With respect to property and casualty insurance company
financial reporting and valuations for any purpose, the
committee is to study, organize discussion of, propose
revisions to, and, on request, advise members about
standards of practice; and promote continuing
education. The committee, in collaboration with other
CIA committees, is to further the development of
actuarial techniques in the areas of risk management,
the development of appropriate measures for risk and
capital and work with regulators in the development of
capital requirements.
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
MEMBERSHIP
Claudette Cantin, Chair [2005]
Isabelle Périgny, [2005]
Shawn Doherty, Vice-Chair
[2005]
Ernest Segal, [2003]
Xavier Bénarosch, [2005]
Katie Suljak, [2003]
Pierre Dionne, [2004]
Christopher Walton, Not
enrolled with CIA [2003]
Linda Goss, [2003]
Patricia Hladun, Regulatory
Representative [2004]
Kevin Lee, [2005]
Denis Poulin, Regulatory
Representative [2005]
Jean-Marc Léveillé, [2005]
PSC Liaison: Marthe Lacroix
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
MEMBERSHIP
―Working Group / Sub-Committees
•DCAT (Linda Goss, Chairperson)
•Fair Value (Xavier Bénarosch, Chairperson)
•Materiality (Jean-Marc Léveillé, Chairperson)
•Discounting (Katie Suljak, Chairperson)
―Minutes Volunteers
•Anne-Marie Klein-Lee
•Laura Morrison
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
2005/2006 PRIORITIES
― Dynamic Capital Adequacy Testing
• Review and Update the 1999 Educational Note
• Completion Date: Spring/Summer 2006
― Fair Value of Liabilities
• Prepare report on potential impact for P&C Insurers
• Completion Date: Summer/Fall 2006
― Standard of Materiality
• Research existing work on materiality
• Issue guidance
• Completion Date: 2006/2007
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
2005/2006 PRIORITIES
― Ceded Liabilities
• Review guidance to be issued by Task Force on Reinsurance
• Update standards or issue additional ed. notes, if necessary
• Completion Date: ??
― Discounting
• PfAD - Review current practices and current guidance
• Revised Educational Note on Discounting where needed.
― Monitor Development in Canadian and International
actuarial scenes
― Improve Guidance Available to members
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
2005/2006 UPDATE
― Revisions to the Standards of Practice (Section 2100)
― Discounting Ed. Note (July 2005)
― Ed. Note on Consideration for Future Income Taxes in
the Valuation of Policy Liabilities (July 2005)
―Year-end and DCAT reminder – Memorandum
― Survey on PfAD’s – current practice and need for
additional guidance
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
2005/2006 UPDATE
― Appointed Actuary Certificates
― Revisions to the Standards of Practice (Section 2100)
― Differences in CIA Standards Approaches by Areas of
Practices
― OSFI Guideline E-15 - Appointed Actuary: Legal
requirements, qualifications and external review
― Work with IBC FAC Tax group re: Fair Value
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
PRIORITIES UPDATE
― Dynamic Capital Adequacy Testing
• Core section and P&C Risk Categories are complete
and accepted by PCFRC
• Life section on risk categories being translated
• Required changes to SOP completed
• Next step: translation and approval by PSC
• Due process
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
PRIORITIES UPDATE
― Fair Value of Liabilities
• New accounting basis fiscal years October 2006 and
after (CICA Section 3855 – Recognition and
Measurement)
• OSFI Guideline D-10 - Accounting for Financial
Instruments Designated as “Held for Trading”
• Membership awareness / Town hall meeting ?
• Impact on discounted liabilities and DCAT
• Educational Note is being drafted
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
PRIORITIES UPDATE
― Standard of Materiality
• Need additional guidance
• Reviewing the work of the AAA on Materiality
concepts and others
• Next step: What do we need to communicate?
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
PRIORITIES UPDATE
― PfAD
• Completed Survey at AA Seminar in 2005
• Compiled the results
• Plan to publish results
• Fair Value may affect margins
• Next step: What do we need to change in the current
guidance?
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
LIAISON
― IBC Financial Affairs Cttee
― OSFI Advisory Cttee
― Various CIA committees/task forces
― Review all CIA Committees, Task Forces and other
actuarial organizations to assess need to have liaison
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
P&C Sub-Committee of CIA Committee on RMCR
― After completion of DCAT project, responsibility to be
moved to RMCR
― Further the development of actuarial techniques in the
area of risk management
― Develop appropriate bases for risk and capital
― Work with regulators in development of capital
requirements
― Liaise with PCFRC
― Chris Townsend, Chair
― NEED VOLUNTEERS
Claudette Cantin
June 19, 2006
P&C Financial Reporting Committee
THANK YOU
QUESTIONS
?
Claudette Cantin
June 19, 2006