Regulatory Alerts2025-01-01
Sound Reinsurance Practices and Procedures Guideline 2025
The Office of the Superintendent of Financial Institutions (OSFI) issued this guideline to establish comprehensive expectations for reinsurance practices and procedures across all federally regulated insurers. Insurers must implement a robust reinsurance risk management policy that defines ceding and counterparty limits, conduct ongoing due diligence on reinsurers regardless of affiliation, and ensure contracts contain clear insolvency and choice-of-law clauses to protect policyholder recoverables. Compliance with these principles directly impacts capital credit eligibility, solvency ratios, and the availability of reinsurance recoverables during cedant or reinsurer insolvency.
Share