The Financial Services Regulatory Authority of Ontario (FSRA) announced April 17 that it has published two new pieces of guidance for consultation, this time focused on corporate governance and operational risk and resilience. This, they say, “will help elevate industry standards while ensuring the long-term sustainability of insurers,” they state.
"Insurers that demonstrate sound corporate governance practices in line with FSRA's proposed corporate governance guidance are more likely to achieve long-term sustainable business performance and safely meet the needs of their policyholders, members, and subscribers," says Mehrdad Rastan, FSRA's executive vice president, credit union and insurance prudential.
Assessing intended outcomes
The guidance provides the regulator’s interpretation of corporate governance, operational risk management and resilience requirements and sets out common industry practices. The guidance also highlights the regulator’s approach for assessing intended outcomes.
Minimum capital test guidelines, governance and operational risk identification principles, processes and practices, data management, information technology and third-party risk management are all examined in the guidance. Roles and responsibilities are also discussed, as is board independence, oversight, reporting and disclosure and corporate culture.
“To support the prudent oversight, management and practices of insurers, FSRA is proposing two new pieces of draft guidance that articulate principles and desired outcomes for both sound corporate governance and operational risk management and resilience,” they write.
The 60-day comment period for stakeholders interested in providing feedback to the regulator, closes June 17, 2024.
