The Financial Services Regulatory Authority of Ontario (FSRA) is responsible for prudential supervision of Ontario Incorporated insurance companies and reciprocals. IFRS 17 was issued by the International Accounting Standards Board (IASB) in May 2017 and sets out requirements for a company reporting information about insurance contracts it issues and reinsurance contracts it holds.

In June 2020, the IASB amended the IFRS 17 Insurance Contracts. All Ontario incorporated Insurers and Reciprocals are required to adopt IFRS 17 by January 1, 2023.

Per Section 102, subsection 2 of the Insurance Act, RSO 1990, a statement of condition of affairs of an insurer shall be in a form approved by the Chief Executive Officer. Ontario Incorporated Insurers and Reciprocals are subject to IFRS as issued by IASB and to IFRS 17 reporting standard, which affects the recognition and measurement, presentation, and disclosure of insurance contracts. 

FSRA may specify additional accounting guidance or disclosure requirements or require Ontario Incorporated Insurers and Reciprocals to use a specific option, within an applicable accounting standard. FSRA makes these specifications in situations where there is a prudential need for additional accounting guidance.

Effective June 2021, FSRA required all Ontario incorporated Insurers and Reciprocals to submit semi-annual progress reports about their company’s transition to IFRS 17. Insurers and Reciprocals must submit the last semi-annual progress report on or before May 31, 2023.

The report must include:

All reports and questions can be directed to your FSRA Relationship Manager.