Cover IMF Staff Country Reports
Buy Book in Print
Canada: Financial Sector Assessment Program-Impact on the Insurance Sector of a Low Interest Rate Environment-Technical Note
Author:
International Monetary Fund. Monetary and Capital Markets Department
Search for other papers by International Monetary Fund. Monetary and Capital Markets Department in
Current site
Google Scholar Close
Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2014: Issue 068
Language:
English
Publication Date:
07 Mar 2014
DOI:
https://doi.org/10.5089/9781484330272.002
ISBN:
9781484330272
ISSN:
1934-7685
Pages:
23
Keywords:
ISCR; CR; firm; interest rate; return; product; life company; company report; rate change; reinvestment rate; companies' market shares; design regulation; companies' inability; interest rate scenario; company's liability; wealth management products; Insurance; Insurance companies; Personal income; Accounting standards; Capital adequacy requirements; Europe; North America; Asia and Pacific; Global
Download PDF (815.6 KB) Download Epub
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.
  • Collapse
  • Expand
Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund