Regulatory Alerts2013-02-28
Earthquake Exposure Sound Practices Guideline
The Office of the Superintendent of Financial Institutions (OSFI) issued this guideline to establish sound practices for property and casualty insurers managing earthquake exposure risk. Insurers must implement comprehensive policies integrating accurate data management, validated catastrophe models, and robust probable maximum loss estimates to align with their defined risk appetite. The framework mandates adequate financial resources, including capital, reinsurance, and contingency plans, alongside mandatory annual reporting to ensure ongoing regulatory compliance and financial preparedness for major seismic events.
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