The P&C Actuary's Role in Solvency Monitoring - Property and ...

PACICC – The P&C Actuary’s Role in Solvency Monitoring Page 2
PART 2 – RESEARCH METHODOLOGY PROCESS
To complete this research assignment, we conducted a literature review and personal interviews.
Through the internet as well as through discussions with experienced actuarial practitioners in the
industry, we identified relevant reports, articles, regulations, and guidelines. We include a
complete list of all reference resources in Appendix A of this paper.
We reached out by telephone and email to provincial regulators. Specifically, we contacted the
regulators in the following provinces:
― Alberta
― Manitoba
― New Brunswick
― Nova Scotia
― Newfoundland
― Ontario
― Prince Edward Island
When speaking with regulators in each of the above provinces, we requested information on P&C
insurers incorporated in the province (i.e., provincially regulated insurers). For each province, we
asked the following four questions:
1. Is a report on dynamic capital adequacy testing (DCAT) required on an annual basis?
2. Is there a requirement for the submission of an actuarial report and opinion statement as to
the adequacy of policy liabilities with the annual return?
3. Is there a requirement to follow the minimum capital test (MCT) guidelines set out by the
Office of the Superintendent of Financial Institutions (OSFI) or similar guidelines?
4. Is actuarial external review (i.e., peer review) required for actuarial reports?
We did not reach out to British Columbia or Quebec as the necessary information was readily
available on their web sites. We also did not reach out to regulators in the territories as it is our
understanding that there are no insurers incorporated in the territories.
To understand the evolution of professional requirements at the CIA, we met with William
Wieland and David Oakden. Both Mr. Wieland and Mr. Oakden are long-time volunteers who
have held numerous senior leadership roles within the CIA. We also conducted an extensive
review of the archived standards of practice of the CIA as well as the activity of the past decade.