PwC's Insurance Review offers a Canadian perspective on the challenges and opportunities in the insurance industry. The articles in the Winter 2011 issue are:
Aligning business models to support customer-driven innovation and growth is the most significant transition facing the insurance industry today. In this first part of a two-part article, we examine developments in market share of the property and casualty (P&C) insurance distribution channels.
|Leveraging the P&C distribution channel for success – Part one (130 KB)|
On the subject of what qualifies as a service of financial intermediation, exempt from GST/HST, we have witnessed a dramatic spectacle in the period between the very scant Department of Finance announcement on December 14, 2009, and the passage of the final, problematic legislation, which became just one of a number of prominent bolts protruding from the neck of the Frankenstein monster that was the 2010 federal budget.
|No new taxes? – No new taxes. Definitely new taxes (151 KB)|
Shariah (i.e. Islamic Law) compliant finance has grown rapidly over the past few years and is now considered an increasingly important element of the global financial market. These products have come to cover the full spectrum of banking, capital markets, asset management and, more recently, insurance (takaful) business. The Banker’s 2010 survey of financial institutions practising Islamic finance reveals that Shariah-compliant assets rose by 8.85% from $822 billion in 2009 to $895 billion in 2010. Islamic finance has had a compound annual growth rate (CAGR) of 23.46% from 2006 to 2010.
|Takaful – Islamic insurance (193 KB)|
Given the complexity of accounting for insurance contracts, the International Accounting Standards Board (IASB) is taking a two-phase approach to issuing an accounting standard for insurance contracts (IFRS 4).
|Proposed tax legislation to provide relief on adoption of IFRS 4 – Insurance contracts for life insurers (98 KB)|
The biggest change relates to the regulatory framework governing the use of reinsurance, which includes implications for the previous limitations on the ceding of premiums, use of unregistered reinsurers and the end of reinsurance trust arrangements as we know them.
|Regulatory Update – To B(3), or not to B(3) (81 KB)|