Section 2700 of the Standards of Practice (SOP) – Policyholder Dividend Determination sets out expectations for actuarial reports on policyholder dividends. An educational note to support this section of the SOP was published in 2014, and this note is now being revised to reflect recent revisions to guideline E-16 (E-16) published by the Office of the Superintendent of Financial Institutions (OSFI). E-16 sets out OSFI’s expectations for participating account management and dividend determination, as required under the Insurance Companies Act (ICA) and the Policyholders Disclosure Regulations (the Regulations). Although the changes to this educational note were triggered by the changes to E-16, the actuary would note that this guidance material is equally relevant for policyholder dividend determination practices in other Canadian jurisdictions.
