President & CEO’s Message — 2020 Initiatives and 2019 Accomplishments

2020 Initiatives

Assuris is collaborating with AMF to develop and participate in a simulation of the failure of a Quebec regulated company. The simulation will allow us to apply and identify potential gaps in the new Guide to Intervention for Quebec-Chartered Life Insurers. It will also ensure that Assuris and AMF are ready to deal with the failure of a life insurance company.

Assuris is updating its social media plan to ensure that we are ready to respond to the need for speed in a modern resolution. The social media plan is a critical component of our Crisis Communication Plan. If a life insurance company fails, quick communication to policyholders will help maintain confidence in the industry.

Assuris is focusing on being resolution ready; this means understanding what we would need to do in resolution to deal with a failed company. Assuris is enhancing its company analysis to ensure that Assuris keeps the cost insolvency low and maintains confidence in the industry.

International Financial Reporting Standards (IFRS) 17 will present new information on how to understand the life insurance industry and the risks of our member companies. Assuris needs to get key risk information under IFRS 17 to improve our risk analysis and protect policyholders from losses during an insolvency. Assuris is also working to ensure that the capital framework under IFRS 17 is appropriate.

Assuris is focused on succession planning and developing our future executives. As such, we are developing and implementing individual training programs for employees. Included in the training programs is corporate training to ensure employees understand the life insurance business and the impact of International Financial Reporting Standards (IFRS) 17.

Assuris is focusing on being resolution ready

2019 Accomplishments

Every three years, Assuris updates its strategic direction. The strategic direction provides strong and effective guidance to management from the Board of Directors. The Board confirmed our on-going mission “to protect policyholders if their life insurance company should fail.” The Board also outlined a pivot in our strategy to give more emphasis on being ready to deal with the resolution of any life insurance company. The revised strategic direction integrated other areas of focus for the organization, including advocating for solvent resolution options, communicating to policyholders on our protection, and succession planning.

Assuris worked with AMF on a revision of the Guide to Intervention for Quebec-Chartered Life Insurers and Assuris member companies (“Guide”). In December, AMF published an updated Guide outlining a solvent resolution process. The Guide is a significant achievement as a solvent resolution will minimize potential losses to policyholders, reduce the cost to the industry and, maintain confidence and stability in the system.

Assuris consulted with member companies and other industry stakeholders to get a better understanding of IFRS 17 and its impact on the life insurance industry. Assuris developed its understanding of the solvency risk implications of the IFRS 17 transition. This involved understanding the capital and actuarial issues and developing a model company to understand the mechanics of IFRS 17 statements. Assuris also identified the potential industry business model changes due to the transition to IFRS 17 to ensure we are resolution ready.

Assuris increased the responsibility of day-to-day operations for all key managers and expert roles. As experts, Assuris understands the importance of transferring knowledge to all employees to ensure we are ready to deal with the failure of a life insurance company. As part of the succession planning, we are developing our employees’ skills and knowledge to ensure that we have the right resources at every level and for every key performance area of the organization to be prepared for future challenges.

Signature of Gordon M. Dunning

Gordon M. Dunning
President & CEO, Assuris