TORONTO, Oct. 28 /CNW/ - The Canadian life and health insurance industry
welcomes the initiative of the Office of the Superintendent of Financial
Institutions (OSFI) to revise the <a href="http://www.osfi-bsif.gc.ca/osfi/index_e.aspx?ArticleID=2639">capital rules for segregated fund guarantee</a>
<a href="http://www.osfi-bsif.gc.ca/osfi/index_e.aspx?ArticleID=2639">obligations for life insurers with approved internal models</a>.
"We are pleased that OSFI has taken these steps to more accurately
reflect the risks associated with segregated fund guarantee obligations," said
Frank Swedlove, President of the Canadian Life and Health Insurance
Association (CLHIA). "This helps to deal with addressing the inappropriate
volatility in capital requirements that we have been experiencing recently."
The Canadian life and health insurance industry remains strong and well
capitalized despite the current uncertainty in the international financial
markets. With assets of more than $430 billion in Canada, minimal exposure to
distressed asset classes and a comparably more robust Canadian market than
elsewhere in the world, Canada's life and health insurers rank among the
strongest financially both nationally and internationally, and remain well
positioned to meet their obligations to their policyholders.
Established in 1894, the CLHIA is a voluntary association whose member
companies account for 99 per cent of Canada's life and health insurance
business. The industry provides a wide range of financial security products
such as life insurance, annuities (including RRSPs, RRIFs and pensions) and
supplementary health insurance to about 26 million Canadians.
For further information:
For further information: Media enquiries: Wendy Hope, Vice President,
External Relations, (416) 777-2221, (416) 565-1853