The Office of the Superintendent of Financial Institutions has published the results of research it commissioned on the insurance industry, and OSFI’s supervisory performance. It indicates that, while OSFI is generally perceived to be effective in the overall discharge of its mandate, there are some areas for improvement.

In the fall of 2006, OSFI commissioned the Strategic Counsel, an independent research firm, to conduct a confidential consultation with insurance companies, to explore perceptions of the current insurance marketplace, of OSFI in general, and of the work of OSFI’s actuarial division in particular.

The areas recommended for improvement include:
-improving OSFI’s ability to deal with emerging actuarial issues;
-providing greater feedback to companies on the quality and content of required filings;
-improving the timeliness of delivery of the memorandum to the appointed actuary;
-broadening communication with the industry about OSFI’s international efforts;
-enhancing the consistency of OSFI’s approach to companies of different sizes;
-and increasing the level of expertise and the complement of staff dealing with actuarial matters.

OSFI says that it appreciates the candid feedback that was provided in this consultation and that it is developing an action plan to address areas for improvement and will keep industry informed of its progress.

In addition to the areas for improvement, the research found that:
-OSFI is seen to be actively involved in actuarial matters;
-it is viewed as having a constructive relationship with the Canadian Institute of Actuaries;
-staff involved in actuarial matters received strong ratings for their knowledge in core areas such as legislation and OSFI guidelines, and CIA Canadian standards of practice;
-and, OSFI received strong ratings for the clarity of its management letters and the usefulness of its guidance.

Future consultations will monitor OSFI’s overall effectiveness and its progress in addressing areas for improvement.

The consultation comprised a series of confidential one-on-one interviews with executives and professionals representing a cross-section of the life and property and casualty insurance companies regulated by OSFI.