OSFI Releases Revised Advisory On Insurance In Canada Of Risks

Introduction - "Where We Are"

On May 29, 2009, Canada's Office of the Superintendent of Financial Institutions (OSFI) released a revised Advisory (the Revised Advisory) updating its landmark October 2007 Advisory (the Original Advisory) on the insurance in Canada of risks under Part XIII of the Canadian Insurance Companies Act (ICA).  The issuance of the Revised Advisory is the latest step in the long evolution of the Canadian regulatory regime for foreign insurance companies from a regime focused on risks located in Canada to one focused on insurance business in Canada.  The Revised Advisory, which is the result of OSFI consultation with the industry and other stakeholders, significantly simplifies the Original Advisory and sets forth more concise, precise and objective criteria for determining whether a foreign insurer is insuring in Canada risks and, thus, subject to regulation under the ICA.