15
Impact of Government Policy on Long-term Investment Market
7. The CLHIA recommends that:
• The Canadian Accounting Standards Board not adopt the new International Financial Reporting
Standard for insurance contracts unless it is established that:
o it is an improvement to the existing high-quality CALM standard, and
o full consideration is given to whether the new standard would negatively impact
insurance coverage for Canadians at competitive prices, or the flow of funds for long-
term funding for the broader economy.
8. The CLHIA recommends that:
• Regulators ensure that the capital levels required to support any asset focus on asset risks as
opposed to the form of investment, and
• Regulators review the capital treatment of "substantial investments" in entities to ensure that
there are no undue disincentives to insurers to making investments in infrastructure projects
going forward.
