DEVELOPMENT OF THE STANDARDS

On the invitation of the Office of the Superintendent of Financial Institutions, the Insurance Bureau of Canada (IBC) formed a working group in 1998 to prepare a set of draft standards of sound business and financial practices for property and casualty insurers. The IBC drew upon standards for similar standards for life insurance companies and deposit-taking institutions, as well as the Risk Management and Control in the Property and Casualty Insurance Industry study conducted by the IBC Effective Regulation Steering Committee. At time of writing, the draft standards for p&c companies had been issued to the industry for comment and will likely be issued as regulatory guidelines, similar to those for life companies, which will require insurers to assess their own compliance and report to the regulator.