This year was a significant year for Assuris in that the Assuris Board of Directors set our new strategic direction. This new direction describes, at the highest level, the intended path of the organization over the next three years.
The updated strategy refocuses the organization on readiness to deal with the failure of a life insurance company in Canada.
Being ready for resolution ensures we can fulfill our mission to protect policyholders if their life insurance company should fail.
Ready for Resolution
To be ready for resolution, Assuris needs key risk information on our member companies to understand any new solvency risks in the industry. We need to obtain key information before the failure of a member company to reduce the cost of resolution. This information will allow Assuris to better analyze and understand individual companies.
Key risk information will also help us understand systemic risks and be better prepared to implement a rapid resolution. A rapid resolution will reduce the cost to the industry and ultimately minimize potential losses to policyholders. It will also mitigate the negative impact on the insurance industry and maintain confidence and stability in the system.
We are committed to working with the regulators and the industry to improve the capital and actuarial regulatory framework. We have an opportunity to enhance the regulatory filings and receive better and more standardized information from the insurance industry.
International Financial Reporting Standards (IFRS) 17 Implementation
International Financial Reporting Standards (IFRS) 17 is coming. Like everyone in the industry, we continue to develop our understanding of the new accounting and actuarial standards. More importantly, we are working on how to identify solvency issues under these new standards. As such, we are working to identify the implications for resolvability and the ability to transfer business to a solvent insurer under IFRS 17 to ensure we are ready for resolution.
We will enhance information about Assuris and its protection for policyholders who have concerns about the failure of their life insurance company and the loss of benefits. Our crisis communication plan will be updated to ensure that we respond to the need for speed in resolution. If a life insurance company fails, ensuring that policyholders understand our protection by making information available to policyholders quickly and in simple consumer-oriented language will be critical to maintaining confidence and stability in the life insurance industry.
The next couple of years will be busy as we implement this strategic direction to ensure that we are ready for resolution and that we continue to provide the best policyholder protection.
A rapid resolution will reduce the cost to the industry and ultimately minimize potential losses to policyholders.
I take this opportunity to thank our member companies for their ongoing support. Specifically, I want to thank our members for taking the time to meet with Assuris. The insights our members provide ensures Assuris is well informed and understands the issues facing our industry.
I want to thank our directors for their commitment to the organization. I also want to recognize Richard Bell, who retired from the Assuris Board of Directors in 2019. Richard made a significant contribution, serving six years as a director. His thoughtful approach and his ability to focus on the issue at hand was greatly appreciated. While Richard provided insight into the life insurance industry in Canada, his understanding of the industry in Quebec was a valuable asset for the Board.
I also welcome our new director Alain Brunet. His industry experience in Quebec will be a great benefit to the Board.
Finally, I want to thank the management and staff of Assuris for their capable commitment to the organization and for their excellent work in yielding another successful year for the organization.
Chair of the Board of Directors