CLHIA-ACCAP

13 IFRS 9 impairment model. Recommendations were also made to the IASB to modify its exposure draft to allow more insurers to qualify for a temporary deferral of IFRS 9 until the new Insurance Contracts Standard comes into effect. Preliminary indications are that the IASB will adopt these recommendations. ii. Long-term Care • The CLHIA continues to work with stakeholders and government officials to communicate the significant fiscal burden that providing long-term care to the baby boomers represents for Canada and to urge action to incent individuals to start taking more personal responsibility for their future potential long-term care costs. In particular, we continue to advocate for a new tax credit on the premiums of qualified long- term care insurance products. ONGOING INITIATIVES i. IFRS • The CLHIA initiated the drafting of an industry Position Paper that was submitted to the Chair of the AcSB, who in turn sent it to IASB members in the U.K. This facilitated a face-to- face dialogue with key IASB Board members to position the Canadian life insurance industry as a key contributor in assisting the IASB with drafting the final Standard, now targeted for late 2016/early 2017. • Multiple stakeholder representations spearheaded by the CLHIA have enabled a thorough discussion and resolution of major issues around IFRS 9. As recommended, OSFI has issued guidance allowing insurers to fair value loans, reducing compliance burdens by avoiding the need to implement the extensive iii. Quebec Affairs • The CLHIA through its Quebec office (now ACCAP-Quebec) continued to address important developments that have an impact on member companies in the province, as well as having the potential for contagion to other provinces. For example, we made numerous representations to government officials and elected members in order to reduce the gap between the cost of prescription drugs in the public drug insurance plan and those charged to private plans. In addition, the CLHIA held several meetings with the AMF concerning the new draft capital adequacy and governance guidelines that were issued in early 2016. Board of Directors President's Message Review of the Year's Results Members CLHIA Code of Member Service CLHIA Officers Chair's Message

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