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

Publication Date: March 07, 2014
Electronic Access: Free Full text (PDF file size is 600KB).
Use the free Adobe Acrobat Reader to view this PDF file

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.
Series: Country Report No. 14/68
Subject(s): Financial Sector Assessment Program | Insurance | Market interest rates | Insurance regulations | Insurance supervision | Canada

Publication Date: March 07, 2014
ISBN/ISSN: 9781484330272/1934-7685 Format: Paper
Stock No: 1CANEA2014006 Pages: 23
US$18.00 (Academic Rate:
US$18.00 )
Please address any questions about this title to