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

Abstract
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
Table Of Contents
Cover; Contents; Glossary; EXECUTIVE SUMMARY; INTRODUCTION; LOW RATES-WHAT IS AT STAKE FOR INSURERS; THE IMPACT IN CANADA; TABLES; 1. Gross Premiums by Major Lines of Business in 2012-L&H FRIs; BOXES; 1. Summary of Canadian Life Insurance Sensitivity to Interest Rate Changes; FIGURES; 1. Major Economy Interest Rates; 2. Canadian Actuarial and Accounting Standards; 2. Aggregate Life Insurance Sector Performance; 3. Life Insurance Response to Lower Interest Rates; 2. Sensitivities of Major Insurance Companies; THE REGULATORY AND SUPERVISORY RESPONSE
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (24 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781484330425

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