2008 Seminar for the Appointed Actuary Colloque pour

2008 Seminar for the Appointed Actuary Colloque pour l’actuaire désigné 2008 Canadian Institute of Actuaries L’Institut canadien des actuaires 2008 Seminar for the Appointed Actuary Colloque pour l’actuaire désigné 2008

2008 Seminar for the Appointed Actuary Colloque pour l’actuaire désigné 2008 PD-4 (Life) Update from the Committee on Risk Management and Capital Requirements

2008 Seminar for the Appointed Actuary Colloque pour l’actuaire désigné 2008 Initiatives • • • Critical Illness capital requirements Approximations used in MCCSR Pandemic Risk Solvency Framework Subcommittee P&C Subcommittee

2008 Seminar for the Appointed Actuary Colloque pour l’actuaire désigné 2008 Critical Illness • MCCSR Guidelines are not clear • Treatment is mixed between Life and A&S • Believe could use Mortality approach (volatility + catastrophe) – Some initial testing by the Committee – Industry QIS released in Summer – OSFI/AMF compiling results from results received

2008 Seminar for the Appointed Actuary Colloque pour l’actuaire désigné 2008 Approximations • 2005 MCCSR changes for volatility and catastrophe allowed approximations to be used (39, 78 for Group Life, AD&D) • Shortcomings have been identified, changes being made by OSFI for Jan 1, 2009, increasing the Group requirement • Working with OSFI to finalize the factor that will be used under the new approach – Analyzing from real data

2008 Seminar for the Appointed Actuary Colloque pour l’actuaire désigné 2008 Pandemic Risk • Update to DCAT Ed Note published in Nov 2007 • Some coverage of pandemic risk • Wanted to develop more specific information for modeling pandemic scenarios Richard Houde

2008 Seminar for the Appointed Actuary Colloque pour l’actuaire désigné 2008 Solvency Framework • Most significant initiative • Spans many years, supporting OSFI and MAC (MCCSR Advisory Committee) • Deliverables range from – Model standards – Develop and test advanced models – Address issues, aggregation, etc • Have been several presentations at past meetings • Documents available on OSFI and CIA websites

2008 Seminar for the Appointed Actuary Colloque pour l’actuaire désigné 2008 Solvency Framework • Today: – Credit Risk Working Group Simone Brathwaite - ALM/Market Risk Working Group Michael White

2008 Seminar for the Appointed Actuary Colloque pour l’actuaire désigné 2008 P&C Subcommittee • Formed to give more focused attention to P&C issues, and expand P&C participation • Main focus – DCAT/Financial Condition – IFRS – P&C version of MAC recently formed