Canada: Financial Sector Assessment Program-Impact on the Insurance Sector of a Low Interest Rate Environment-Technical Note

March 7, 2014

Preview Citation

Format: Chicago

Canada: Financial Sector Assessment Program-Impact on the Insurance Sector of a Low Interest Rate Environment-Technical Note, (USA: International Monetary Fund, 2014) accessed December 3, 2024

Summary

This paper discusses Canada’s Financial Sector Assessment Program (FSAP) impact on the insurance sector of a low interest rate environment. It highlights that actuarial standards on valuation of liabilities require that assumed reinvestment rates take increasing account of current market rates that led to higher liabilities as low rates persisted. The note outlines the effect of Canadian accounting and actuarial standards that further increases in liabilities need to be recognized in the short term. Policy measures have been undertaken by Office of the Superintendent of Financial Institutions (OSFI) in the banking sector to address broader risks.

Subject: Accounting standards, Capital adequacy requirements, Financial institutions, Financial regulation and supervision, Insurance, Insurance companies, National accounts, Personal income, Public financial management (PFM)

Keywords: Accounting standards, Asia and Pacific, Capital adequacy requirements, Companies' inability, Companies' market shares, Company report, Company's liability, CR, Design regulation, Europe, Firm, Global, Insurance, Insurance companies, Interest rate, Interest rate scenario, ISCR, Life company, North America, Personal income, Product, Rate change, Reinvestment rate, Return, Wealth management products

Publication Details

Pages:

23
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2014/068
Stock No:

1CANEA2014006
ISBN:

9781484330272
ISSN:

1934-7685

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