Annual Returns Instructions to Ontario incorporated insurers and reinsurers, fraternal societies, and reciprocal insurance exchanges

As part of the Financial Services Commission of Ontario's (FSCO) monitoring of Ontario insurers, we require all licensed insurers to provide the documents described below, unless otherwise noted:

Business Plan

We request that you submit a company Business Plan for the year 2016.  As a minimum, the Plan for 2016 should include a full-year forecast of the Income Statement, Balance Sheet and the Minimum Capital Test as at year-end 2016.  The Plan should be detailed enough to enable us to track your company's progress against its key performance indicators at the end of each calendar quarter, but ideally on a monthly basis, and to assess the significance of any variance that may emerge in that quarter or on a year-to-date basis.  Please include a narrative about the action plan you believe will help us to better understand your plans for the year.

If you have not already provided us with your 2016 Business Plan, we would request that it be submitted on or before February 29, 2016 and in an electronic format (pdf copy).

Dynamic Capital Adequacy Testing (DCAT)

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 a DCAT report to FSCO no later than September 30, 2016.  Please submit one electronic copy (signed pdf) of the report.

Since the DCAT process involves a projection of the changes in financial conditions under various scenarios, we expect that the company board of directors and senior management will review and assess the significant risks and the implications from the Business Plan on capital with the Appointed Actuary, and take actions as needed.  The DCAT report is expected to be prepared in accordance with the Canadian Institute of Actuaries Standards of Practice and signed by the Appointed Actuary.

Updated Minimum Capital Test Guideline for Property & Casualty Insurance Companies

FSCO has updated the Minimum Capital Test Guideline for Property and Casualty Insurance Companies – Superintendent's Guideline No. 08/04 (Superintendent's Guideline). The Superintendent's Guideline comes into effect on January 1, 2016 and is available on FSCO's website

Please refer to the following directives released by OSFI and take note of FSCO's position on the respective issues:

2016 Minimum Continuing Capital and Surplus Requirements Guideline for Life Insurance Companies

FSCO is adopting the 2016 Minimum Continuing Capital and Surplus Requirements Guideline [New Window] for Life Insurance Companies and Fraternal Benefit Societies that was released by OSFI in November 2015.  The Guideline comes into effect on January 1, 2016.

Cyber Security Self-Assessment Guidance

FSCO is adopting the Cyber Security Self-Assessment Guidance [New Window] that was released in October 2013. We require that all Ontario insurers complete the self-assessment by December 31, 2016 and report the results to their boards of directors. 

We look forward to receiving the information requested on or before the dates indicated for each item above.