The Office of the Superintendent of Financial Institutions Canada (OSFI) has released the final version of its Longevity Insurance and Longevity Swaps policy advisory (Policy) and an accompanying letter (Letter). As provided in the Letter, the final version of the Policy replaces the earlier draft version issued for comment in August 2013, which was discussed in our September 2013 Blakes Bulletin: Longevity Risk Transfer – Canadian Opportunities.

The final version of the Policy is consistent with the draft Policy and provides clarification in some areas. It appears that OSFI is continuing to watch the development of the Longevity Insurance and Longevity Swaps market. We expect that this will be of particular interest to Canadian pension plans, reinsurers, life insurers, and others who seek to offer longevity risk hedging to pension plans.