Property and casualty insurers will soon have to begin filing new data detailing their exposure to earthquake risks, federal financial regulators said Monday.
The Office of the Superintendent of Financial Institutions (OSFI) is reminding P&C insurers that have earthquake exposure that they have to start filing new data on these exposures with the regulator by April 15. It also published a new version of the earthquake exposure data form, which will take effect in 2015, today.
OSFI began consulting on these proposed reporting obligations in August last year. It says that two common themes emerged from consultations with the industry. First, it notes that the industry argued that the new earthquake filing form is onerous, and that it requests information that was not previously reported and whose purpose is not always clear.
In response, OSFI says, “Data quality and the associated documentation are the most controllable aspects of sound earthquake risk management… As such, [its guideline] sets high expectations in these areas.” It also notes that it has revisited the cost effectiveness of the data points requested and “amended the form where appropriate.”
Second, the industry also recommended that terminology and definitions used in the form should be consistent with other rules. On this issue, OSFI says that it has made some changes to improve clarity and consistency.