Practice Council Update

Faisal Siddiqi

By Faisal Siddiqi, FCIA

This article provides a summary of the recent activities of the Practice Council.

Committee on the Appointed/Valuation Actuary

Many actuaries in the life insurance and property-casualty practices are currently very busy working on changes related to IFRS 17. The Practice Council has received updates related to IFRS 17 and development of educational notes, supplements, and explanatory reports from both the Committee on Life Insurance Financial Reporting (CLIFR) and the Committee on the Appointed/Valuation Actuary (AA).

IFRS 17 will have a significant impact on the insurance industry. One of the key priorities of the AA Committee is to enable the Appointed Actuary to effectively carry out, per CIA standards, the Insurance Company Act requirements to promote relationships between the regulators and boards of directors of companies.

The six priorities of the AA Committee are the following:

  1. IFRS 17: Help the Actuarial Standard Board’s (ASB) Designated Group on the insertion of ISAP 4 into the CIA’s Standards of Practice. Assist CLIFR and the Committee on Property and Casualty Insurance Financial Reporting (PCFRC) to develop educational notes, and help the Committee on International Insurance Accounting (IIAC) to develop document(s) that highlight the key differences between the valuation of liabilities under the current standards and under IFRS 17.
  2. Capital: Work with the Office of the Superintendent of Financial Institutions (OSFI) and the Committee on Risk Management and Capital Requirements (CRMCR) to integrate the requirements of dynamic capital adequacy testing (DCAT) and own risk solvency assessment (ORSA). Regarding the Life Insurance Capital Adequacy Test (LICAT), the AA Committee has provided input on the certification note.
  3. Segregated funds capital requirements.
  4. IFRS 17: Provide input on Canadian-specific promulgations on mortality improvement and the ultimate discount rate.
  5. Peer review: Assist the DG looking into this.
  6. AA Seminar: Planning for this year’s session.

Currently, the IIAC is working with CLIFR and the PCFRC to release educational notes related to IFRS 17 targeted for late spring/early summer. There is a lot of interest in this and we are all working to get these notes out to practitioners as soon as possible.

Committee on Life Insurance Financial Reporting (CLIFR)

CLIFR is very busy too and is currently working on or has recently completed work on the following:

Committee on Pension Plan Financial Reporting (PPFRC)

The PPFRC also had a busy start to the new year. So far, they are working on or have released guidance related to the following:

On top of this already busy schedule, the CIA, PPFRC, ASB, and Practice Council meet regularly with regulators to provide updates to the work we are doing and determine where we can help each other going forward.

Other Committees

The other practice committees are quite busy too! At the Practice Council level, we receive regular updates from each practice committee at our monthly conference calls. Of note recently:


Finally, the Practice Council is working with the Board to help prepare for changes in the CIA’s governance structure and to improve our overall governance process. This involves reviewing our own due process, the documents we receive for review, and the transition to the new proposed committees.

As usual, the Practice Council is available to discuss our review work noted above and our membership is shown on the CIA’s website.

Faisal Siddiqi, FCIA, is Chair of the Practice Council.

Canadian Institute of Actuaries/Institut canadien des actuaires