Memorandum to the Appointed Actuary (2024) – Letter

August 22, 2024

To: All federally regulated insurers

Subject: 2024 Memorandum to the Appointed Actuary

We are issuing our 2024 Memorandum to the Appointed Actuary (Memorandum). The Memorandum communicates our expectations regarding the content of appointed actuary reports (AARs) that must be filed as specified in subsection 667(2) of the Insurance Companies Act.

Appointed actuaries should apply the guidance in the Memorandum to reports submitted in relation to fiscal years ending December 31, 2024. Appointed actuaries of insurers with fiscal years ending before that date may choose to apply the guidance in the Memorandum to the AARs filed in relation to that fiscal year.

We made significant changes to the Memorandum. In particular, we:

  • merged separate life insurance and property and casualty (P&C) insurance memorandums into a single document,
  • replaced detailed prescription of the form and content of AARs with an outline of our expectations regarding the content of the AARs, and
  • moved instructions and guidance regarding supplementary tables to distinct documents.

Our objective was to align the Memorandum with our principles-based approach to supervision, to provide appointed actuaries with greater flexibility in adapting their AARs to their own purposes, and to reduce regulatory burden.

Appointed actuaries may continue to follow the detailed guidance on form and guidance provided in the 2023 Memoranda. AARs written following that guidance will satisfy the expectations described in the 2024 Memorandum.

We did not make significant additions to the supplementary tables that must be submitted with the AAR. The changes that we made include:

  • elimination of certain tables that were previously required in the life insurance supplemental tables in relation to the transition to IFRS 17
  • addition of five tables to the mortgage insurer supplementary tables to collect IFRS 17 information related to the general measurement approach calculation of liabilities
  • movement of the instructions for the completion of the tables from the Memorandum to the tables

Please send questions regarding this letter or the Memorandum to:

Sincerely,

Bruce Langstroth
Managing Director, Insurer Financial Resilience
Supervision Sector

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