The Actuarial Guidance Council (AGC), with the support of the Committee on Life Insurance Financial Reporting (CLIFR) and in collaboration with the Committee on Property and Casualty Insurance Financial Reporting (PCFRC), initiated an external consultation on the draft educational note, IFRS 17 Discount Rates for Life and Health Insurance Contracts (“CLIFR’s draft educational note”) in the fall of 2020. CLIFR and its IFRS 17 Discount Rate subcommittee (“subcommittee”) have reviewed the comments received as part of the external consultation process. This consultation process and review of the comments received resulted in the subcommittee recommending changes to the reference curves outlined in Chapter 2 of CLIFR’s draft educational note. The purpose of this memorandum is to provide a summary of the changes that are expected to be reflected in the final educational note later this year. The AGC, CLIFR, and PCFRC are releasing this summary of changes ahead of publishing their final educational notes and recommend that it be considered when completing the Office of the Superintendent of Financial Institutions (OSFI) and the Autorité des marchés financiers (AMF) Quantitative Impact Study #3 for Life Insurance Capital Adequacy Test (LICAT)/Capital Adequacy Requirements for Life Insurance (CARLI)/Minimum Capital Testing (MCT) that will be conducted in 2021.
