As every year, we have updated the Memorandum for Actuarial Reports on Property and Casualty Business outlining the guidelines and requirements for the actuaries who are required to prepare reports to be filed with the P&C-1; and P&C-2; annual returns, pursuant to section 667 of the Insurance Companies Act.

This Memorandum is the result of discussions between OSFI and other provincial regulators in an effort to harmonize the insurance regulators' actuarial requirements for companies. This Memorandum can be found in English and French on our Web site at:

http://www.osfi-bsif.gc.ca/eng/insurers/property/annual/index.asp
http://www.osfi-bsif.gc.ca/fra/assureurs/multirisques/annuel/index.asp

The changes made to last year's Memorandum are indicated by a sidebar located to the right of the lines where modifications were made. Instructions which deserve special attention are highlighted in bold.

This year's main changes are as follows:

• Section 5.1 on Peer Review has been clarified;
• A comparison of Actual Experience with Expected Experience must now be provided for the last four years. Note that it is OSFI's intent to gradually increase this exercise to a 5-year comparison next year.
• For cases where the actuary is removing his qualified opinion conditional upon receiving an unqualified opinion from the external auditor, it is important that we be informed.

Furthermore, the discounting of all policy liabilities will be required for all federally regulated property and casualty insurance companies, starting January 1, 2003.

Please note that the Actuary's Report and the DCAT Report should be sent to the Accounting and Financial Information Division, Ottawa.

Should you have any questions, please do not hesitate to contact me at (613) 990-7797. A hard copy of this Memorandum can be obtained upon request, please fax request to Stéphane Dupel at (613) 952-8219.

	Bernard Dupont