As part of FSRA’s monitoring of Ontario Insurers, we require all Ontario incorporated insurance companies and reciprocals to provide the documents described below, unless otherwise noted.
We request that you submit a company Business Plan for the year 2023 prepared using IFRS 17 accounting principles.
We request that the revised business plan be submitted within 60 calendar days from December 31st, 2022 and in an electronic format (pdf copy).
Financial Condition Testing (FCT)
We require that all Ontario Insurers (other than Fraternal Societies, Reciprocal Insurance Exchanges and Insurers that are members of the Fire Mutuals Guarantee Fund) submit an FCT report to FSRA no later than September 30, 2023. Please submit one electronic copy (signed pdf) of the report.
The FCT report is expected to be prepared in accordance with the Canadian Institute of Actuaries Standards of Practice and signed by the Appointed Actuary.
On June 25, 2020, the International Accounting Standards Board (IASB) issued “Amendments to IFRS 17” addressing concerns and challenges that were identified after IFRS 17 was published in 2017. Included in the amendments to IFRS 17 is the deferral of the effective date to January 1, 2023.
IFRS 17 replaces IFRS 4, the current insurance accounting standard, and is effective for annual periods beginning on or after January 1, 2023. The Canadian Accounting Standards Board endorsed IFRS 17, which is now incorporated into Part I of the CPA Canada Handbook - Accounting.
Ontario Insurers are subject to IFRS and thus, to this reporting standard, which will affect the recognition and measurement, and presentation and disclosure of insurance contracts.
FSRA expects Ontario Insurers to finalize IFRS 17 implementation by end of the year, 2022 and ensure that the new accounting standard is implemented as of Jan 1st, 2023.
To support Insurers’ transition from IFRS 4 to IFRS 17, FSRA is requesting Ontario incorporated Insurers to submit their final IFRS 17 readiness report on or before May 31st, 2023. Refer to this notice (IFRS 17 Transition and Progress Report Requirements for Ontario Incorporated Insurers and Reciprocals) for details on how to prepare and submit semi-annual progress reports.
For more information, please visit OSFI’s website for IFRS 17 Transition and Progress Report Requirements for Federally Regulated Insurers as these will be applicable to Ontario Incorporated Insurers as well.