Insurance industry gives OSFI a lukewarm grade on clarity of regulations

The Office of the Superintendent of Financial Institutions (OSFI) got a lukewarm rating from the insurance industry on the clarity and ease of understanding of its regulations and guidelines.
Of the 104 insurers surveyed, 9% rated the regulator ‘very good,’ 45% rated it ‘good,’ and 35% said ‘fair,’ while 11% said OSFI was ‘poor’ with respect to developing guidelines and regulations that are clear and easy to understand.
Last year, OSFI commissioned an independent research firm, The Strategic Counsel, to survey executives of OSFI-regulated financial institutions.
When asked about OSFI’s ability to develop regulations and guidance that strike an appropriate balance between prudential considerations and the need for institutions to compete, only 15% of insurance companies gave the regulator a ‘very good.’ Nearly half of insurers (48%) said the regulator’s ability in striking a balance between prudence and allowing for competition was ‘good,’ while 29% said it was fair and 8% rated the regulator’s ability as ‘poor.’
In contrast, 74% of federally regulated deposit-taking institutions (DTIs) such as banks felt OSFI’s guidelines and regulations were clear and easy to understand.
DTIs (90%) are also more likely than insurance companies (77%) to provide a positive rating on the issue of how proactive OSFI is in dealing with emerging issues pertaining to the insurance/deposit-taking sector.
Overall though, 92% of insurance companies reported they were satisfied with OSFI as a regulator. Ninety-seven per cent of insurers had a good impression of OSFI’s performance in contributing to public confidence, and 96% of insurers surveyed felt OSFI performed well during the financial turmoil between 2008 and 2010.