Actuarial Notes

Exam GH-201C

GH 201-C – Valuation and Regulation, Canada is an exam of the Society of Actuaries' Fellowship (FSA) pathway. Its syllabus covers the Nov 2026/Mar 2027/Jul 2027 sittings.

Learning Objectives

Reserving (15–30%) The candidate will understand how to apply valuation principles for group and health insurance contracts.

  1. Describe the types of claim reserves
  2. Explain the limitations and biases of the traditional valuation methods
  3. Calculate appropriate claim reserves given data
  4. Describe, calculate, and evaluate the impact of environmental factors on reserve calculations (trend, seasonality, claim processing changes, etc.)
  5. Evaluate data resources and appropriateness for calculating reserves
  6. Describe, calculate, and evaluate non-IBNR types of reserves and explain when each is required
  7. Apply applicable best practices related to reserving

Readings:

  • Video: Valuation at the Heart of Health Insurance (Background)
  • Video: Health Valuation and Stakeholder Views (Background)
  • Group Insurance, Skwire, Daniel D., 8th Edition, 2021 (1a-1e, 1g)
    • Ch. 39: Claim Reserves for Short-Term Benefits
  • GH201-100-25: Health Reserves (1a-1f)
  • CIA Educational Note - Valuation of Group Life and Health Policy Liabilities, Jun 2010, sections 5, 8-10 and Appendices B, C, & D (1a-1f)
  • Canadian Institute of Actuaries Standards of Practice - Insurance, Jun 2024, sections 1400, 1510, 1700, 2100, 2200 & 2300 (1d, 1g)

Financial Statements (20–35%) The candidate will understand how to prepare and interpret insurance company financial statements in accordance with IFRS.

  1. Interpret insurer financial statements from the viewpoint of various stakeholders
  2. Evaluate key financial performance measures used by life and health insurers for both short and long-duration contracts
  3. Project financial outcomes and recommend a strategy to senior management to achieve financial goals
  4. Describe how to compute the taxable income of a life and health insurance company
  5. Explain fair value accounting principles and describe International Financial Reporting Standards (IFRS)
  6. Construct basic financial statements and associated actuarial entries for a life and health insurance company

Readings:

  • Group Insurance, Skwire, 8th Edition, 2021 (2a, 2d, 2e, 2f)
    • Ch. 37: Group Insurance Financial Reporting in Canada
  • GH201-693-26: OSFI Guidelines for Life Insurance Capital Adequacy Test (LICAT) Read introductions to all chapters below: (2b, 2c, 2f)
    • Ch. 1: Overview and General Requirements
    • Ch. 2: Available Capital, sections 2.1-2.2
    • Ch. 6: Insurance Risk, sections 6.1-6.6 & 6.8
    • Ch. 11: Aggregation and Diversification of Risks
  • CIA Educational Note - Financial Condition Testing, Aug 2025, pp. 1-46 & 61 (2b, 2c)
  • CIA Educational Note - Sources of Earnings Calculations – Group Life and Health, Oct 2010 (2b, 2c, 2f)
  • Comparison of IFRS 17 to Current CIA Standards of Practice, Jun 2022 (excluding sections 3.3, 7.2.1, 7.2.2, 7.2.3, 7.2.5 & 8.1.1) (2e, 2f)
  • CIA Educational Note – IFRS 17 Coverage Units for Life and Health Insurance Contracts, Dec 2022 (excluding sections 3.1.2, 3.1.3, 3.2 & 3.4) (2e, 2f)
  • CIA Explanatory Report - IFRS 17 Expenses, Dec 2024 (2e, 2f)
  • IFRS 17 Insurance Contract Examples (2e, 2f)
  • Group Insurance, Skwire, 8th Edition, 2021 (2a, 2b, 2c)
    • Ch. 43: Analysis of Financial and Operational Performance
  • GH201-101-25: Group and Health Reinsurance – A Primer for Actuaries (2c)

Regulation & Taxation (15–25%) The candidate will understand how to evaluate the impact of regulation and taxation on insurance companies and plan sponsors in Canada.

  1. Describe the regulatory and policy making process in Canada
  2. Describe the major applicable laws and regulations and evaluate their impact
  3. Understand the impact of the taxation of both insurance companies and the products they provide

Readings:

  • Canadian Insurance Taxation, Swales, et. al., 4th Edition, 2015 (3c)
    • Ch. 4: Income for Tax Purposes – General Rules (pp. 37-38 [excluding “Imputed Interest Benefit on Real Property”] & 43-47)
    • Ch. 9: Investment Income Tax (pp. 135-142)
  • GH201-644-25: TACCESS: An Advisor’s Guide to Understanding How Taxes Impact Group Insurance Benefits in Canada (3c)
  • GH201-700-25: Ch. 12 (sections 12.1-12.4) and 13 of Canadian Handbook of Flexible Benefits, McKay, Robert J., 3rd Edition (3a, 3b, 3c)
  • GH201-661-25: Employee Life and Health Trusts & Health and Welfare Trusts (3c)
  • GH201-637-25: Ch. 16 and 17 of Canadian Life & Health Insurance Law, Jones, H. E. (3a, 3b, 3c)
  • GH201-722-25: Navigating Group Insurance Laws in Quebec (3a, 3b, 3c)
  • GH201-631-25: Canadian Life & Health Insurance Association: The Protection of Personal Information: Some Questions and Answers, pp. 1-37 (Questions 1-53) (3b)
  • GH201-621-26: CLHIA Guideline G3: Group Life and Group Health Insurance (3b)
  • GH201-671-26: CLHIA Guideline G4: Coordination of Benefits-Group Health and Dental (3b)
  • GH201-672-25: CLHIA Guideline G17: Coordination of Benefits for Out-of-Country/Out-of-Province/Territory Medical Expenses (3b)
  • GH201-647-25: Protecting Canadians’ Long Term Disability Benefits (3a)
  • GH201-660-25: Self-Funded Disability Plans: Time Running Out on Federally Regulated Employers (3b)
  • GH201-659-25: Ontario 2014 Budget Will Forbid Employers from Self-Insuring Long Term Disability Plan to Employees (3b)
  • GH201-662-25: Firefighter Who Died of Cancer was Killed in the Line of Duty, Court Says (3a)
  • GH201-663-25: West Nile Victim Wins $130,000 Insurance Payout (3a)
  • GH201-685-25: Campagnie D’Assurances Standard Life V. Tremblay 2010—QCCA 933: A Hefty Price to Pay for Unwarranted Surveillance (3a)
  • GH201-709-25: Brooks V. Canada Safeway Ltd., pp. 1219-1227 (up to section II) (3a)
  • GH201-710-25: Termination of Benefits Coverage at Age 65 Declared Unconstitutional (3a)
  • GH201-713-25: How Will the Potential Work-from-Anywhere Boom Post-Pandemic Impact Benefit Plans? (3a)
  • GH201-714-25: How Employers are Integrating DEI into their Benefits Plans (3a)
  • GH201-705-25: Assuris for Group Insurance in Canada (3b)
  • GH201-648-25: Canadian Life and Health Insurance Industry Agreement to Protect Canadians’ Drug Coverage (3b)

Government Programs (20–30%) The candidate will understand how to describe and evaluate government programs providing health and disability benefits in Canada.

  1. Describe eligibility requirements for social programs in Canada and the benefits provided
  2. Describe how private group insurance plans work within the framework of social programs in Canada

Readings:

  • Morneau Shepell Handbook of Canadian Pension Benefit Plans, 17th Edition, 2020 (4a, 4b)
    • Ch. 19: Employment Insurance
  • GH201-716-25: Legislative Changes to EI Sickness Benefits (4a, 4b)
  • Morneau Shepell Handbook of Canadian Pension Benefit Plans, 17th Edition, 2020 (4a, 4b)
    • Ch. 2: Government Pension Programs (pp. 44-64, Canada & Quebec Pension Plans)
    • Ch. 18: Workers’ Compensation
  • GH201-723-26: Disability Pension under the Quebec Pension Plan (4a)
  • GH201-724-26: Adjustment of the Retirement Pension for Disabled Persons Between Ages 60 and 65 (4a)
  • GH201-725-26: Canada Disability Benefit 2025: How to Apply, Who Qualifies, and What You’ll Receive (4a)
  • Morneau Shepell Handbook of Canadian Pension Benefit Plans, 17th Edition, 2020 (4a, 4b)
    • Ch. 17: Provincial Hospital and Medical Insurance Plans
  • GH201-694-25: Guide to Canada Benefits Legislation, 2018, sections 7.1, 7.2, 7.2.1, 7.2.5 & 7.2.6 (4a, 4b)
  • GH201-702-25: OHIP+ Pharmacy Redesign Update - FAQS For Patients (4a)
  • GH201-721-25: The Quebec Act Respecting Prescription Drug Insurance (ARPDI) (4a, 4b)
  • GH201-651-25: The High-Stakes Battle of Medications, Insurers and The Government (4b)
  • GH201-718-25: An Update on Canada’s National Strategy for Drugs for Rare Diseases (4b)
  • GH201-696-25: Ensuring the Accessibility, Affordability and Sustainability of Prescription Drugs in Canada (Introduction and Exec Summary only) (4b)
  • GH201-653-25: Telus Health Note: How Much Does that Drug Cost? (4a, 4b)
  • GH201-706-25: PMPRB-Framework Modernization (4a, 4b)
  • Pharmacare: Is There a Pill for That?, CIA, Feb 2021 (4b)
  • GH201-695-25: A Joint Statement from the pan-Canadian Pharmaceutical Alliance and the Canadian Generic Pharmaceutical Association (4b)
  • GH201-715-25: Ontario’s New Drug Plan Will Require a Swap of Brand-Name Biologic Medications for Cheaper Versions (4b)
  • Biosimilars in Canada: Building Momentum in the Wake of Recent Switching Policies, Nov 2021 (4b)
  • GH201-726-26: Patented Drug Pricing: The PMPRB Releases New Price-Review Guidelines (4a)
  • GH201-719-25: Canada’s New Dental Care Plan Could Impact Nearly 9 Million Canadians—Are You One of Them? (4a)
  • GH201-720-25: Seniors Spend Thousands on Dental Work, Suffer in Pain or Wind Up in ERs. Will Canada’s Plan Help? (4a)
  • GH201-727-26: Canadian Dental Care Plan (4a)
    • Intro
    • When You Can Apply
    • When You Can Visit an Oral Health Provider
    • What Services are Covered
    • Eligibility Requirements
    • Information for Oral Health Professionals

Flow of Funds (5–15%) The candidate will understand how to describe the flow of funds in the health care system and the role of providers in the system.

  1. Establish a framework of how funds flow through the health care system
  2. Describe the role physicians play and their influence on the flow of funds
  3. Describe the market power of hospitals and how provider systems compete for patients, physicians, and contracts
  4. Compare the flow of funds in the US and Canadian health care systems and evaluate the value of different systems

Readings:

  • GH201-102-25: Flow of Funds in Healthcare System and the Role of Providers (5a-5d)
  • GH201-103-25: Health Economics and Financing, Getzen, Thomas and Kobernick, Michael, 6th Edition, 2022: Sections 5.4-5.6, 6.2-6.3, 7.4-7.5, 8.4-8.5, 13.2-13.3 (5a, 5b, 5c)
  • Sustainability of the Canadian Health Care System and Impact of the 2014 Revision to the Canada Health Transfer, SOA/CIA, Sep 2013, pp. 1-3, 51-54 & 82 (5d)

Source Material

Source Material

  • Video: Valuation at the Heart of Health Insurance
    • Background
  • Video: Health Valuation and Stakeholder Views
    • Background
  • Group Insurance, Skwire, Daniel D., 8th Edition, 2021
    • Ch. 39: Claim Reserves for Short-Term Benefits (1a-1e, 1g)
    • Ch. 37: Group Insurance Financial Reporting in Canada (2a, 2d, 2e, 2f)
    • Ch. 43: Analysis of Financial and Operational Performance (2a, 2b, 2c)
  • GH201-100-25: Health Reserves
    • Outcomes 1a-1f
  • CIA Educational Note - Valuation of Group Life and Health Policy Liabilities, Jun 2010, sections 5, 8-10 and Appendices B, C, & D
    • Outcomes 1a-1f
  • Canadian Institute of Actuaries Standards of Practice - Insurance, Jun 2024, sections 1400, 1510, 1700, 2100, 2200 & 2300
    • Outcomes 1d, 1g
  • GH201-693-26: OSFI Guidelines for Life Insurance Capital Adequacy Test (LICAT) Read introductions to all chapters below:
    • Ch. 1: Overview and General Requirements (2b, 2c, 2f)
    • Ch. 2: Available Capital, sections 2.1-2.2 (2b, 2c, 2f)
    • Ch. 6: Insurance Risk, sections 6.1-6.6 & 6.8 (2b, 2c, 2f)
    • Ch. 11: Aggregation and Diversification of Risks (2b, 2c, 2f)
  • CIA Educational Note - Financial Condition Testing, Aug 2025, pp. 1-46 & 61
    • Outcomes 2b, 2c
  • CIA Educational Note - Sources of Earnings Calculations – Group Life and Health, Oct 2010
    • Outcomes 2b, 2c, 2f
  • Comparison of IFRS 17 to Current CIA Standards of Practice, Jun 2022 (excluding sections 3.3, 7.2.1, 7.2.2, 7.2.3, 7.2.5 & 8.1.1)
    • Outcomes 2e, 2f
  • CIA Educational Note – IFRS 17 Coverage Units for Life and Health Insurance Contracts, Dec 2022 (excluding sections 3.1.2, 3.1.3, 3.2 & 3.4)
    • Outcomes 2e, 2f
  • CIA Explanatory Report - IFRS 17 Expenses, Dec 2024
    • Outcomes 2e, 2f
  • IFRS 17 Insurance Contract Examples
    • Outcomes 2e, 2f
  • GH201-101-25: Group and Health Reinsurance – A Primer for Actuaries
    • Outcomes 2c
  • Canadian Insurance Taxation, Swales, et. al., 4th Edition, 2015
    • Ch. 4: Income for Tax Purposes – General Rules (pp. 37-38 [excluding “Imputed Interest Benefit on Real Property”] & 43-47) (3c)
    • Ch. 9: Investment Income Tax (pp. 135-142) (3c)
  • GH201-644-25: TACCESS: An Advisor’s Guide to Understanding How Taxes Impact Group Insurance Benefits in Canada
    • Outcomes 3c
  • GH201-700-25: Ch. 12 (sections 12.1-12.4) and 13 of Canadian Handbook of Flexible Benefits, McKay, Robert J., 3rd Edition
    • Outcomes 3a, 3b, 3c
  • GH201-661-25: Employee Life and Health Trusts & Health and Welfare Trusts
    • Outcomes 3c
  • GH201-637-25: Ch. 16 and 17 of Canadian Life & Health Insurance Law, Jones, H. E.
    • Outcomes 3a, 3b, 3c
  • GH201-722-25: Navigating Group Insurance Laws in Quebec
    • Outcomes 3a, 3b, 3c
  • GH201-631-25: Canadian Life & Health Insurance Association: The Protection of Personal Information: Some Questions and Answers, pp. 1-37 (Questions 1-53)
    • Outcomes 3b
  • GH201-621-26: CLHIA Guideline G3: Group Life and Group Health Insurance
    • Outcomes 3b
  • GH201-671-26: CLHIA Guideline G4: Coordination of Benefits-Group Health and Dental
    • Outcomes 3b
  • GH201-672-25: CLHIA Guideline G17: Coordination of Benefits for Out-of-Country/Out-of-Province/Territory Medical Expenses
    • Outcomes 3b
  • GH201-647-25: Protecting Canadians’ Long Term Disability Benefits
    • Outcomes 3a
  • GH201-660-25: Self-Funded Disability Plans: Time Running Out on Federally Regulated Employers
    • Outcomes 3b
  • GH201-659-25: Ontario 2014 Budget Will Forbid Employers from Self-Insuring Long Term Disability Plan to Employees
    • Outcomes 3b
  • GH201-662-25: Firefighter Who Died of Cancer was Killed in the Line of Duty, Court Says
    • Outcomes 3a
  • GH201-663-25: West Nile Victim Wins $130,000 Insurance Payout
    • Outcomes 3a
  • GH201-685-25: Campagnie D’Assurances Standard Life V. Tremblay 2010—QCCA 933: A Hefty Price to Pay for Unwarranted Surveillance
    • Outcomes 3a
  • GH201-709-25: Brooks V. Canada Safeway Ltd., pp. 1219-1227 (up to section II)
    • Outcomes 3a
  • GH201-710-25: Termination of Benefits Coverage at Age 65 Declared Unconstitutional
    • Outcomes 3a
  • GH201-713-25: How Will the Potential Work-from-Anywhere Boom Post-Pandemic Impact Benefit Plans?
    • Outcomes 3a
  • GH201-714-25: How Employers are Integrating DEI into their Benefits Plans
    • Outcomes 3a
  • GH201-705-25: Assuris for Group Insurance in Canada
    • Outcomes 3b
  • GH201-648-25: Canadian Life and Health Insurance Industry Agreement to Protect Canadians’ Drug Coverage
    • Outcomes 3b
  • Morneau Shepell Handbook of Canadian Pension Benefit Plans, 17th Edition, 2020
    • Ch. 19: Employment Insurance (4a, 4b)
    • Ch. 2: Government Pension Programs (pp. 44-64, Canada & Quebec Pension Plans) (4a, 4b)
    • Ch. 18: Workers’ Compensation (4a, 4b)
    • Ch. 17: Provincial Hospital and Medical Insurance Plans (4a, 4b)
  • GH201-716-25: Legislative Changes to EI Sickness Benefits
    • Outcomes 4a, 4b
  • GH201-723-26: Disability Pension under the Quebec Pension Plan
    • Outcomes 4a
  • GH201-724-26: Adjustment of the Retirement Pension for Disabled Persons Between Ages 60 and 65
    • Outcomes 4a
  • GH201-725-26: Canada Disability Benefit 2025: How to Apply, Who Qualifies, and What You’ll Receive
    • Outcomes 4a
  • GH201-694-25: Guide to Canada Benefits Legislation, 2018, sections 7.1, 7.2, 7.2.1, 7.2.5 & 7.2.6
    • Outcomes 4a, 4b
  • GH201-702-25: OHIP+ Pharmacy Redesign Update - FAQS For Patients
    • Outcomes 4a
  • GH201-721-25: The Quebec Act Respecting Prescription Drug Insurance (ARPDI)
    • Outcomes 4a, 4b
  • GH201-651-25: The High-Stakes Battle of Medications, Insurers and The Government
    • Outcomes 4b
  • GH201-718-25: An Update on Canada’s National Strategy for Drugs for Rare Diseases
    • Outcomes 4b
  • GH201-696-25: Ensuring the Accessibility, Affordability and Sustainability of Prescription Drugs in Canada (Introduction and Exec Summary only)
    • Outcomes 4b
  • GH201-653-25: Telus Health Note: How Much Does that Drug Cost?
    • Outcomes 4a, 4b
  • GH201-706-25: PMPRB-Framework Modernization
    • Outcomes 4a, 4b
  • Pharmacare: Is There a Pill for That?, CIA, Feb 2021
    • Outcomes 4b
  • GH201-695-25: A Joint Statement from the pan-Canadian Pharmaceutical Alliance and the Canadian Generic Pharmaceutical Association
    • Outcomes 4b
  • GH201-715-25: Ontario’s New Drug Plan Will Require a Swap of Brand-Name Biologic Medications for Cheaper Versions
    • Outcomes 4b
  • Biosimilars in Canada: Building Momentum in the Wake of Recent Switching Policies, Nov 2021
    • Outcomes 4b
  • GH201-726-26: Patented Drug Pricing: The PMPRB Releases New Price-Review Guidelines
    • Outcomes 4a
  • GH201-719-25: Canada’s New Dental Care Plan Could Impact Nearly 9 Million Canadians—Are You One of Them?
    • Outcomes 4a
  • GH201-720-25: Seniors Spend Thousands on Dental Work, Suffer in Pain or Wind Up in ERs. Will Canada’s Plan Help?
    • Outcomes 4a
  • GH201-727-26: Canadian Dental Care Plan
    • Intro (4a)
    • When You Can Apply (4a)
    • When You Can Visit an Oral Health Provider (4a)
    • What Services are Covered (4a)
    • Eligibility Requirements (4a)
    • Information for Oral Health Professionals (4a)
  • GH201-102-25: Flow of Funds in Healthcare System and the Role of Providers
    • Outcomes 5a-5d
  • GH201-103-25: Health Economics and Financing, Getzen, Thomas and Kobernick, Michael, 6th Edition, 2022: Sections 5.4-5.6, 6.2-6.3, 7.4-7.5, 8.4-8.5, 13.2-13.3
    • Outcomes 5a, 5b, 5c
  • Sustainability of the Canadian Health Care System and Impact of the 2014 Revision to the Canada Health Transfer, SOA/CIA, Sep 2013, pp. 1-3, 51-54 & 82
    • Outcomes 5d