In a question-and-answer session, Superintendent Peter Routledge backed a preplanned resolution framework for insurers that become non-viable after a catastrophic earthquake, warning that the effects could spread beyond the property and casualty insurance sector to the broader financial system. Governments and Parliament would decide any federal arrangement, while the Office of the Superintendent of Financial Institutions would contribute prudential expertise, risk analysis and supervisory insight. Routledge also reiterated that OSFI is rebalancing its risk appetite to give greater weight to growth and competition while keeping financial resilience as its primary responsibility. He cited the recent Domestic Stability Buffer reduction, targeted adjustments to risk weights and capital requirements, and recognition of catastrophe bonds as examples of greater flexibility. Institutions remain responsible for governing artificial intelligence use and managing climate-related financial risks, while OSFI will assess whether risk transfer is transparent and effective as reinsurance markets evolve.
Canada's Office of the Superintendent of Financial Institutions backs preplanned earthquake insurer resolution framework, gives greater weight to growth and competition
Superintendent Peter Routledge backed a preplanned resolution framework for insurers that become non-viable after a catastrophic earthquake, with governments and Parliament responsible for any federal arrangement. He also reiterated OSFI’s shift toward giving growth and competition greater weight while preserving resilience, citing targeted capital changes, the Domestic Stability Buffer reduction and recognition of catastrophe bonds. Institutions remain responsible for managing risks from artificial intelligence, climate exposures and new risk transfer tools.