The Office of the Superintendent of Financial Institutions has made two revisions to its guideline setting out annual disclosure requirements for federally-regulated Property and Casualty insurers.

OSFI has broadened the Interest Rate Sensitivity test to include the effect on the fair value of all financial assets and financial liabilities that are interest rate sensitive.

As well, commencing in fiscal 2003, the test is to be performed for both an upward and downward shift in the yield curve.

OSFI will require that the less favourable result should be disclosed in the notes to the financial statements by reporting separately both the effect on the fair value of the relevant financial assets and on the fair value of the relevant financial liabilities.

OSFI invites institutions to provide comments regarding the revised guideline by September 10 through their industry association.